The FTSE 100 hit a new record high on Monday, as defence firms’ stock values soared amid a growing focus on the Ukraine war from European leaders.
London’s blue-chip index climbed 62 points to finish the day at 8,871, or a 0.7% rise.
Defence stocks rose after a summit in London when the UK and France announced a “coalition of the willing” in an effort to secure peace.
The summit followed the dramatic public clash between US President Donald Trump and Ukraine’s Volodymyr Zelensky last week.
Among stocks, BAE Systems rose 14%, while engine maker Rolls-Royce followed with a 6.4% rise amid the rally in the defence sector.
Sterling was up 1.1% against the dollar at 1.2708, while it was roughly flat against the euro at 1.2106.
In Europe, France’s Cac 40 rose 1.2%, and in Frankfurt the Dax rose 2.6%.
Stateside, the S&P 500 and Dow Jones were both 0.5% in the red as UK markets were closing.
In company news, manufacturing giant Senior said sales have picked up for its aerospace division thanks to higher prices, demand for flights, and production improving following Boeing’s strike action in the US.
The UK firm, which is based in Rickmansworth, Hertfordshire, said last year that it was cutting its global workforce to help reduce costs.
Shares in the company jumped 8.5%.
Elsewhere, Bunzl said profit before income tax declined nearly 4% year-on-year, mainly driven by deflation across the US and Europe.
The company said the inflation had led to fiercer competition to decrease prices among suppliers.
Shares fell 6.7%.
The biggest risers on the FTSE 100 were BAE Systems, up 204p to 1610.75p, Rolls-Royce, up 33.4p to 777.2p, St James’s Place, up 43p to 1100.5p, Rightmove, up 26.6p to 697.4p, and IMI, up 78p to 2078p.
The biggest fallers on the FTSE 100 were Bunzl, down 252p to 3116p, Severn Trent, down 66p to 2437p, BT, down 3.6p to 156.2p, Informa, down 17p to 842p, and Spirax, down 135p to 7140p.
