October in positive territory

London's leading share index was on course to end October in positive territory on Friday, which would be its first monthly rise in three months.

The FTSE 100 edged 0.1% higher to 10,732.58 points by 0941 GMT, taking its gain for the month so far to 1.3%. The mid-cap FTSE 250 moved the other way, slipping 0.6% on the day.

AstraZeneca leads drug stocks higher

AstraZeneca was the standout riser, climbing 3.6% after announcing a restructuring programme expected to save $1.5 billion. The company said the savings would support long-term investment, including in new drug pipelines. The wider pharmaceutical sector rose 3%, putting it on track for its strongest month since February.

Banks and miners weigh on the index

Not every part of the market shared the gains. Banks were the biggest drag, with NatWest falling 7.9% after disappointing third-quarter profit figures. Precious-metal miners dropped 3.4% and industrial miners fell 1.3%, tracking declines in gold and copper prices.

Energy stocks offered some support, rising 0.2%, as Brent crude traded above $117 a barrel. BP edged marginally higher after reporting a record quarterly net profit.

Budget relief behind the mood

Investors also welcomed a budget from Chancellor John Healey that raised taxes on banks and gambling firms by less than many had feared, sparking a rally in those shares earlier in the week. Defence firms rallied too, after Healey said reprioritisation elsewhere would fund the government's defence plan. Consumer staples also rose, with British American Tobacco and Unilever both up about 2%.

Sources: Reuters