FTSE 100 rises on defence spending boost and miner, tech gains

London’s FTSE 100 climbed on Tuesday, ending around 10,500 points. The move was driven by two distinct forces. A surge in defence stocks followed Prime Minister Keir Starmer’s announcement of a £300 billion, four‑year modernisation programme for the UK armed forces, with an extra £15 billion earmarked for defence up to 2030. Shares of defence contractors rose, notably Babcock International (+3.3%), BAE Systems (+2.0%) and QinetiQ (+2.4%).

At the same time, cyclical shares lifted the index. Miner Antofagasta led gains (+3.9%) with Anglo American close behind (+3.6%). Technology‑focused investment trusts such as Scottish Mortgage and Polar Capital Technology also jumped, helped by recent rebounds in major tech companies and volatility in SpaceX holdings. The combined effect saw the FTSE up between 0.5% and 0.9% during the session.

Broader market context included easing euro‑zone inflation data, which helped European equities, and a stable pound against the dollar. Overall, the market reacted positively to both the defence spending outlook and higher commodity‑linked and tech‑sector earnings.