FTSE 100 gains as oil and yields ease

Unbranded trading floor monitors in London as FTSE 100 rises while oil prices and bond yields ease

Key Points

01FTSE 100 rose around 0.4%–0.5% on October 26, 2026
02Oil prices slipped over 1% while staying near six‑month highs
03Energy stocks fell as banks, miners and select cyclicals advanced
04Trade came ahead of John Healey’s first UK budget and a Fed meeting

FTSE 100 edges higher as week begins

UK blue-chip stocks advanced on October 26, 2026, with the FTSE 100 gaining around 0.4%–0.5% in morning trade. The index was up 0.47% at one point and stood as high as 10,744.12 by 08:45 GMT, having earlier traded 10.68 points higher at 10,701.5.

The move higher came after an early dip and took place alongside gains in major European peers, with Germany’s DAX and France’s CAC (FRA40) 40 also rising. Sterling weakened modestly to $1.3358 during the session.

Oil price pullback shapes sector moves

A retreat in crude prices played a central role in driving market sentiment. Brent crude futures fell over 1%, including a decline of 1.26% to about $115.3 per barrel in early trade, while West Texas Intermediate dropped around 2% to about $101.5 per barrel.

The pullback followed a spike in crude on the previous Friday that had been linked to concerns over possible renewed US attacks on Iran after mid‑term elections. The latest fall coincided with preparations in Tehran to host senior officials from Saudi Arabia, Pakistan and Turkey for talks on regional security.

Energy underperforms as other sectors rebound

Despite the broader index gains, energy stocks lagged. The sector fell about 1.8%, with Shell (SHEL) down roughly 1.7% and BP off around 2% as investors marked down shares following strong prior performance. Experian also declined, falling 1.74%.

Other sectors showed more resilience. Banks, aerospace and defence, and brokerage names rebounded, and Rolls‑Royce climbed 2.3% after a sharp drop in the previous session. Miners gained as gold prices (XAUUSD) supported the group, helping underpin the FTSE 100’s advance even as oil-related names weakened.

Notable individual movers and macro backdrop

Among individual stocks, technology firm Computacenter was a standout, surging 6.32% after raising its full‑year profit guidance. Precious metals producer Fresnillo also performed strongly, adding 2.73% as investors sought exposure to mining shares.

The session opened a week dominated by domestic and global policy events. Investors positioned ahead of Finance Minister John Healey’s first budget on Wednesday and monitored developments before the US Federal Reserve’s upcoming policy meeting. Easing US Treasury yields and the moderation in oil prices contributed to a more constructive risk tone across UK equities.

Key Takeaways

01UK equities gained despite weakness in energy shares, as lower oil prices and easing US yields supported broader risk appetite.
02Sector rotation was evident, with miners, financials and select industrials offsetting declines in large oil and some consumer names.
03Key macro events, including John Healey’s first budget and an impending Federal Reserve decision, shaped positioning alongside moves in crude and bond markets.

References