The FTSE 100 rose about 0.5% on Tuesday as investors reacted to Andy Burnham’s surprise choice of John Healey as chancellor and his stated commitment to fiscal discipline. At his first cabinet meeting, Burnham reaffirmed budget restraint while reiterating his pledge to bring down living costs.
UK economic data offered some support to market sentiment. Public borrowing declined in June, and labour market figures were broadly in line with expectations: wage growth softened slightly, while the unemployment rate held steady at 4.9%.
Financials, healthcare, defence and commodity stocks led the gains. Energy majors Shell and BP advanced 0.8% and 1.3% respectively, as Brent crude rose above $91 per barrel. Babcock climbed 4.5% after Prime Minister Andy Burnham told NATO Secretary General Mark Rutte that Healey’s appointment underscored the government’s commitment to defence spending. By contrast, London Stock Exchange Group fell more than 2.5% after unveiling plans for a 24‑hour weekday trading platform.
