London's main share index ended Monday on a firmer footing, closing higher after a session shaped by renewed interest in technology shares and attention turning to the Budget later in the week. The FTSE 100 finished up 0.7% at 10,767.33, while the mid-cap FTSE 250 rose 1.09% to 24,501.25, its strongest one-day move since 9 October.

Technology and aerospace lead the gains

Technology services firm Computacenter was among the day's strongest performers after raising its profit forecast for the 2026 financial year, rising by about 13%. Aerospace and defence shares also recovered ground, with Rolls-Royce up 6.1% and BAE Systems up 4.1%. Energy shares moved the other way, easing 0.8% after Friday's record high, with Shell down 0.8% and BP down 1.2%.

Budget and interest rates in focus

Investors were also looking ahead to two set-piece events: Chancellor John Healey's first Budget on Wednesday, and the US Federal Reserve's policy decision the same day. UK government bond yields eased to a one-month low, a sign, market reports suggested, that traders expect the Budget to place weight on market stability. Last week's stronger-than-expected UK inflation data has also strengthened expectations of a Bank of England rate rise in November, keeping the focus firmly on prices, borrowing costs and the government's fiscal plans.

Source: Reuters