The FTSE 100 closed higher on Monday, 6 July 2026, extending a rally to near a four-month high. A takeover approach for easyJet and strength in defence stocks led the gains, while corporate dealmaking reshaped sentiment across London.
London's FTSE 100 closed about 0.43% higher, near 10,724 points, building on Friday's close of 10,679.03, itself a four-month high. Corporate dealmaking reshaped sentiment through the session, as a takeover approach for easyJet and gains in defence names carried the index toward levels last seen before Middle East tensions escalated earlier in the year.
easyJet bid leads the gains
The single biggest driver was news that easyJet had agreed in principle to a takeover approach from US investment firm Castlelake, reported to value the budget carrier at roughly £5.5 billion. easyJet shares surged around 10%, lifting the wider UK airline and travel sector. The proposal was described as the fifth such approach from the firm, a sign of continued private capital appetite for UK-listed assets seen as undervalued.
A second deal shaped the mood. ITV agreed to sell its media and entertainment production division to Comcast-owned Sky for up to £1.6 billion, comprising £1.2 billion in cash plus the transfer of Love Productions, with a further £200 million contingent on performance targets.
Defence and mining set the tone
Beyond easyJet, defence and aerospace stocks featured among the session's gainers, with RELX, BAE Systems, and Babcock all advancing. Reports pointed to a prospective £4.6 billion contract win for Leonardo's UK joint venture, Edgewing. GSK, British Airways owner IAG, and consumer group Unilever also rose.
Precious metals miners offset part of the advance, however. Fresnillo, Endeavour Mining, Airtel Africa, and Halma traded lower, reflecting some profit-taking after strong runs amid elevated gold prices.
What investors are watching
The advance formed part of a broadly positive session across European equity indices, with the Stoxx 600 pushing to fresh record territory. Wall Street's reopening after the Independence Day holiday added support, with the S&P 500 closing 0.72% higher at 7,537.43.
Attention now turns to Bank of England policy. Markets are pricing in a pause at the July meeting, even as the June composite PMI slipped to 49.3, signalling a mild contraction in private sector activity. Over the trailing twelve months, the index has climbed 21.04%, within a 52-week range of 8,798.70 to 10,934.90 points.
Source: BBN Times
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