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FTSE 100 movers: Defence firms shoot higher; housebuilders fall

Thu 02 Jul 2026 14:54

(Sharecast News) - London's FTSE 100 was up 1.8% at 10,669.95 in afternoon trade on Thursday, surging ahead after a weak non-farm payrolls report tempered US rate hike expectations. Defence firms BAE Systems, Babcock International and Melrose all rallied. Earlier in the week, the British government announced plans to ramp up investment in drones and strengthen the country's nuclear deterrent as part of a £15bn hike in defence spending.

The government announced on Tuesday that over £5bn will be spent over the next four years on drone development, with £63bn allotted over the same period to strengthen the UK's nuclear deterrent and to fund the Dreadnought and SSN-AUKUS submarines.

The DIP also includes money to build a next-generation stealth fighter jet for the Royal Air Force and to upgrade naval bases at Faslane, Portsmouth and Devonport.

In total, defence spending will rise from £54bn a year under the previous government to nearly £80bn by 2029.

Housebuilders were in the red, with Barratt Redrow and Persimmon both weaker, while F&C Investment Trust fell as it traded without entitlement to the dividend.

FTSE 100 - Risers

BAE Systems (BA.) 1,984.50p 5.61% Babcock International Group (BAB) 1,053.00p 5.38% Compass Group 11 (CPG) 33.47p 4.50% London Stock Exchange Group (LSEG) 8,484.00p 3.95% Melrose Industries (MRO) 493.70p 3.48% Airtel Africa (AAF) 335.00p 3.34% Coca-Cola HBC AG (CDI) (CCH) 5,110.00p 3.05% Lion Finance Group (BGEO) 11,650.00p 2.92% Diageo (DGE) 1,523.50p 2.70% Tesco (TSCO) 472.60p 2.67%

FTSE 100 - Fallers

The Sage Group (SGE) 841.80p -1.61% Computacenter (CCC) 4,350.00p -1.27% Relx plc (REL) 2,336.00p -1.02% Barratt Redrow (BTRW) 277.10p -0.86% Hiscox Limited (DI) (HSX) 1,846.00p -0.65% F&C Investment Trust (FCIT) 346.80p -0.52% Persimmon (PSN) 1,052.50p -0.47% Glencore (GLEN) 511.70p -0.45% Metlen Energy & Metals (MTLN) 42.15p -0.40% Pearson (PSON) 1,238.00p -0.40%

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