Direct answer
London’s FTSE 100 ended October with its first monthly gain in three months. Reuters reported on October 30, 2026 that the blue chip index edged up about 0.1% on Friday to close at 10,729.78 points, rising over 1% in October, helped by a jump in AstraZeneca and a UK budget that raised taxes by less than many investors had feared.
What happened
AstraZeneca jumped 7% on Friday, its best day in a year, after the Anglo-Swedish drugmaker announced a restructuring drive that will likely save $1.5 billion and help fund long term plans, including investment in new drug pipelines. The broader pharmaceutical sector gained 5.1% on the day, its biggest monthly gain since February.
Not every part of the market rose. Banks weighed most on the index on Friday after NatWest lost nearly 9% following a weaker than expected outlook for interest income. Precious metal miners lost 5.3% and industrial metal miners lost 2.9%, tracking declines in gold and copper. The midcap FTSE 250, which holds smaller and more UK focused companies, slipped nearly 1% on the day.
There were other gainers too. BP rose 0.5% after posting a record quarterly net profit, as covered in our post on BP’s record profit. Consumer staples stocks also rose, with British American Tobacco up 1.7% and Unilever up 2.1%. Aerospace and defence firms were among the best performers during the week after finance minister John Healey said that shifting spending priorities in other departments would fund the government’s defence plan.
The budget backdrop mattered. Earlier in the week, Healey’s first budget raised taxes on banks and gambling firms by less than expected, which sparked a rally in those stocks. Reuters also noted that data earlier in October showed inflation rose more than expected in September, which has strengthened the case for an interest rate rise by the Bank of England in November.
Why it matters for beginners
An index like the FTSE 100 is a basket of the 100 largest companies listed in London, weighted by size. When the index rises, it does not mean every company rose. On Friday, AstraZeneca’s jump helped lift the whole index, while banks and miners pulled in the other direction. That is why one strong company can move a headline index even on a mixed day.
A monthly gain after two weaker months is also a useful reminder to look beyond a single day. The FTSE 100 was up over 1% for October as a whole, even though Friday’s rise was only about 0.1%. A month is made up of many trading days, and a budget, company results, and interest rate expectations can all shape the total.
For beginners, the UK story also shows how markets react to expectations, not just to news itself. Taxes on banks and gambling firms did rise, but because the rises were smaller than many investors had feared, shares rallied. In markets, a result that is less bad than expected can still feel like good news.
What to watch next
First, the Bank of England’s decision next week, and whether it raises its key interest rate, as many investors now expect after the stronger September inflation data. Second, more detail on AstraZeneca’s restructuring plan, including where the $1.5 billion in savings will come from and how it will be spent. Third, bank results and interest income outlooks, after NatWest’s fall showed how sensitive bank shares are to that outlook. And fourth, whether the FTSE 250, which is more tied to the UK economy at home, starts to recover alongside the larger, more global FTSE 100.
FAQ
What is the FTSE 100?
It is an index of the 100 largest companies listed on the London Stock Exchange, weighted by market value. It is often used as a shorthand for how large UK listed companies are doing, even though many of them earn much of their revenue overseas.
Why did AstraZeneca rise so much?
Reuters reported that the company announced a restructuring drive expected to save $1.5 billion. Investors often welcome cost savings when they believe the money can support future growth, such as investment in new drug pipelines.
Why did the FTSE 250 fall while the FTSE 100 rose?
The FTSE 250 holds smaller companies that are more exposed to the UK economy at home. The FTSE 100 holds larger, more global companies. The two indexes can move in different directions on the same day when news affects large global firms more than smaller domestic ones.
Does a first monthly gain in three months mean the market has turned?
Not on its own. One monthly gain breaks a short run of declines, but it does not guarantee further gains. Interest rates, inflation, company results, and the budget will all continue to shape the next moves.