Banks and defence stocks lifted London shares at midday on Tuesday, 10 November 2026, while oil majors fell as Brent crude slipped below $90 a barrel. The FTSE 100 was up 50.82 points, or 0.5%, at 10,833.69 at midday, while the FTSE 250 was up 174.37 points, or 0.7%, at 24,880.61.

The rise extended Monday's gains, when the FTSE 100 closed up 1.0% at 10,782.87. European markets were also higher at midday, with the CAC 40 in Paris up 1.2% and the DAX 40 in Frankfurt up 1.3%.

Banks lead the risers

Financial stocks provided the biggest boost to the index. Lion Finance Group rose 3.8% to 13,790p, making it the leading FTSE 100 riser at midday, while Prudential gained 3.1% to 986.40p, Standard Chartered rose 2.6% to 2,212.50p and Barclays gained 2.4% to 440.03p.

Investors were also watching comments from Bank of England Deputy Governor Clare Lombardelli, who said she would not rule out a further interest rate rise in December, while adding that she did not yet have enough information to decide. Money markets priced in a roughly 50% chance of a 25-basis-point rise in December, according to LSEG data.

The Bank of England raised its benchmark rate by 25 basis points to 4.00% at its November meeting, its first rise since 2023, with one member favouring a larger 50-basis-point increase.

Defence stocks climb

Aerospace and defence led the sector gains, rising 2.4%. Rolls-Royce climbed 3.3% to rank among the top performers on the FTSE 100, while Melrose Industries and Babcock International each advanced by more than 1%.

The defence gains came as investors continued to weigh the outlook for the sector against a backdrop of higher government spending and strong order books, and as the wider market recovered from last week's sell-off.

Oil majors drag as Brent falls

On the other side of the market, the energy sector led the declines, falling 2.2%. Shell fell 2.3% to 3,615.25p and BP declined 1.9% to 546.10p, tracking oil prices lower.

Brent crude was trading at $91.15 a barrel at midday on Tuesday, lower than $94.27 late on Monday, after earlier slipping below $90. The fall followed renewed hopes of a diplomatic resolution to the conflict between the United States and Iran, after US President Donald Trump downplayed the prospect of further military strikes on Iran for now.

Vodafone also fell, down 2.0% to 114.62p, despite raising its full-year profit and cash flow guidance after a first-half loss driven by a €4.85 billion impairment charge in Germany.

US inflation test ahead

Investors were looking ahead to the release of US consumer price inflation figures for October at 13:30 GMT, which could influence expectations for the future path of US interest rates. Consensus forecasts pointed to annual inflation accelerating to 3.9% in October, from 3.7% in September.

The pound was quoted at $1.3426 at midday on Tuesday, higher than $1.3415 at the London equities close on Monday. Stocks in New York were called mixed ahead of the open, with the Dow Jones Industrial Average set to open up 0.3% and the S&P 500 up 0.1%, while the Nasdaq Composite was called down 0.2%.

The figures quoted here are midday readings, not closing levels, and the final direction of the session could still change before the London market closes.