The FTSE 100 showed the signs of caution you’d expect ahead of the Rachel Reeves widely feared Budget, with upbeat news from the tech sector across the pond helping offset any nervousness on the UK front.

London’s leading index had flipped between positive and negative territory during the morning session, though a strong overnight session for US stocks helped it 0.4% higher at the time of writing.

“UK stocks are shaking off a dicey end to last week as increased hopes of a pre-Christmas interest rate cut from the Federal Reserve give stocks on both sides of the Atlantic a boost,” says Dan Coatsworth, head of markets at AJ Bell.

“Tech stocks powered the recovery on Wall Street yesterday and fostered hope of a Santa Rally as we approach the beginning of December. Google-owner Alphabet is closing in on a $4 trillion valuation as enthusiasm builds around its Gemini 3 AI model and its custom chips.”

It’s interesting to see Nvidia shares down and Google higher in the US premarket after reports that Meta will use Google chips in their AI push. Nvidia was down 3% while Google rallied 4%.

In the UK, Kingfisher charged to the top of the FTSE 100 leaderboard after releasing an encouraging Q3 update. Strong sales in the UK and Ireland drove a more-than-welcome uptick in profit guidance and sent shares 5% higher.

“DIY conglomerate Kingfisher, the name behind B&Q and Screwfix gave an encouraging update, raised its full-year guidance despite softening market conditions in the UK where it remains mindful of inflation and tomorrow’s Budget,” said Derren Nathan, head of equity research, Hargreaves Lansdown.

“Strategic initiatives and a focus on efficiency saw the group raise its underlying pre-tax profit guidance from around £540 million to a range of £540-£570 million. Kingfisher is gaining share in a challenging market and despite the recent recovery in the share price still offers a dividend yield of over 4% as well as the potential for some modest capital appreciation.”

Miners were also among the best performers on Tuesday after a call between Donald Trump and the Chinese Premier raised hopes that the worst of the trade tensions are now behind us. Antofagasta and Anglo American both rose by more than 2%.

Insurer Beazley was the top faller, shedding 10%, on news that written insurance premiums rose only 1% as rates on renewal business fell 4%. The drop briefly took Beazley shares back to the lowest levels since 2024.

Next shares rose 1% after announcing the sale of land it no longer needed for £54m.

Kingfisher shares jumped on Tuesday after the DIY group raised its profit guidance, driven by strong performance in the UK and Ireland.

Kingfisher reported group like-for-like sales growth of 0.9% in the third quarter, rising to 1.6% year-to-date on an underlying basis, driven by continued volume and transaction growth. Total group sales reached £3.25bn in the quarter and £10.06bn for the nine months.

The UK and Ireland delivered the standout performance, with LFL sales up 3.0% in Q3 as the group continued to gain market share.

Strong momentum in trade and e-commerce channels bolstered results, with trade sales climbing 12.1% to reach 31.3% penetration, whilst e-commerce sales grew 10.2% to 20.7% penetration.

“Kingfisher’s quarter suggests the strategy is finally gaining some traction. B&Q and Screwfix are clearly winning the battle for market share in the UK, with the shift towards trade and online channels paying dividends,” explained Chris Beauchamp, Chief Market Analyst UK at IG.

Kingfisher shares were 5% higher at the time of writing.

Performance was more subdued in continental Europe. French LFL sales declined 2.5% in constant currency terms, with year-to-date sales down 2.3%. Poland saw LFL sales fall 1.3% in the quarter and 1.8% year-to-date, with both markets reflecting softer consumer demand.

Despite softness in Europe, the retailer upgraded its full-year adjusted profit before tax guidance to approximately £540m-£570m, up from the previous range of £480m-£540m.

The company has completed £175m of its current £300m share buyback programme, which remains on track for completion by March 2026.

“Kingfisher’s latest trading update presents a cautiously optimistic tone, with the company raising profit guidance, supported by solid UK and Ireland performance and ongoing operational improvements,” said Adam Vettese, market analyst for eToro.

“The continuation of a £300 million share buyback programme highlights management’s confidence in future cash generation, while digital investments are driving higher online sales penetration and maintaining market share across core brands.”

easyJet shares slipped on Tuesday after reporting a 9% increase in pre-tax profit to £665 million for the year ending 30 September 2025, representing its third consecutive year of earnings growth.

Guidance, however, wasn’t as encouraging amid rising costs amid strategic improvements to easyJet’s network.

The budget airline’s headline earnings before interest and tax jumped 18% to £703 million, driven by strength in both its airline and holidays divisions. 

EasyJet shares were down 2% at the time of writing.

Investors might have hoped for a bit of a pop higher given the stock’s poor performance over the summer months, but it appears profits just weren’t strong enough to spark a major reaction. 

“The outlook for the new year brought some mixed news,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.

“Winter losses are set to get worse, coming in around £30 million behind market expectations, as ongoing investment in its new strategic bases in Milan and Rome continues. Looking past this, management’s hoping to grow capacity by around 7% this year, or nearly double the sector average, and first-half bookings are already tracking ahead of the prior year. With a net cash pile of over £0.6 billion, there’s also plenty of cushion if the market experiences some turbulence.”

The airline business contributed £415 million in pre-tax profit, whilst easyJet holidays achieved £250 million. This target has been achieved ahead of schedule.

Following the uptick in activity, the company has upgraded its holiday division target to £450 million pre-tax profit by 2030. The airline expanded capacity by 9% during the year, with seats up 4%. 

“A 9% rise in pre-tax profit would be respectable for any carrier, but it will be EasyJet’s holiday division that turns investors’ heads,” explained Mark Crouch, market analyst for eToro.

“Slowly becoming the group’s profit engine, the package division delivered £250mn of PBT on 20% customer growth and 32% profit growth, so buoyant, in fact, that management has already upgraded medium-term targets it thought would take longer to hit.”

However, revenue per available seat kilometre fell 3% as the company invested in longer leisure and city routes whilst opening new bases at Milan Linate, Rome Fiumicino and London Southend. 

Cost efficiency improved, with headline cost per available seat kilometre down 3%, helped by a 7% reduction in fuel costs.

In terms of the dividend, easyJet has outlines a payout worth 20% of headline profit after tax, payable in early 2026.​​​​​​​​​​​​​​​​

Growth slowed at AIM-quoted telecoms enterprise software provider Cerillion (LON:CER) last year, but that was due to the timing of contract wins. This year growth will accelerate because of contracts already won and there could be further wins in the coming months.

In the year to September 2025, revenues were 4% ahead at £45.4m – they were lower at the interim stage. Underlying pre-tax profit was 10% higher at £21.8m. The total dividend is 15.4p/share, up 17%. Net cash is £34.4m.

New orders were 25% higher at £47.6m. There was a contract with an existing customer worth £25.3m in total that was won at the end of the period. Including recurring maintenance and other revenues, there is around £25m of revenues already booked for this financial year.

The potential sales pipeline is at a new record level of £275m even after the recent contract wins. There is continued investment in technology, including AI.

Mergers in Cerillion’s market sector are likely to reduce competition at tenders and they are also providing opportunities to take on experienced staff from the merged entities.

Panmure Liberum forecasts 2025-26 revenues of £54m, while margins are likely to decline from their current high levels due to investment in additional sales staff. Pre-tax profit is forecast at £22.7m, rising to £24.9m next year. Cerillion tends to beat forecasts and a large contact win early enough in the year would boost the current forecast.  

The share price is 55p higher at 1410p, but it is 19% lower this year. The prospective multiple is 24 and cash will continue to increase.

The FTSE 100 was higher on Monday as mining companies helped lift the index after BHP called time on its pursuit of Anglo American.

Traders will also find confidence in a strong rebound in US stocks on Friday, which will ease concerns about AI valuations and the outlook for interest rates.

London’s leading index was 10 points higher at the time of writing as traders eyed this week’s Budget and potential implications for UK markets.

“Equities up, gold down, bitcoin stable – this is a remarkably different picture than last week’s troubling scenes that dogged financial markets,” says Russ Mould, investment director at AJ Bell.

“It suggests investors have had time to collect their thoughts over the weekend, and to start the new week in a calmer mood. It also helps that Ukraine peace talks have dominated the news agenda, giving hope to investors and individuals around the world.”

The FTSE 100 had been higher earlier in the session, but the rally faded as the session progressed. Investors will look to US markets for the next catalyst as cash trading gets underway this afternoon.

The mining sector was the key driving force behind the gains after BHP pulled out of its pursuit of Anglo American, saying ‘it is no longer considering a combination of the two companies.’

BHP’s decision boosted the miners as investors positioned for possible M&A elsewhere in the sector.

“Miners were in vogue amid ongoing M&A activity in the sector. News that BHP has walked away from a second attempt to buy Anglo American has left investors hungry for action elsewhere,” Russ Mould said.

“Glencore was among the top risers on the FTSE as it is seen as a potential merger candidate for one of the big players, or as a buyer itself.”

Glencore rose 1.9% but it was the precious metals miners that had their noses out in front. Endeavour Mining was the top riser with a 3.7% gain, while Fresnillo rose 3.1%.

BAE Systems and Babcock were the biggest decliners, with talks to end the war in Ukraine underway. BAE Systems lost 2% and Babcock fell 1.9%.

There was a tinge of weakness in UK-centric sectors such as retailers and some financials ahead of Wednesday’s Budget.

S4 Capital shares fell on Monday after the marketing group downgraded its full-year guidance following weaker-than-expected October performance.

The digital advertising group now expects 2025 like-for-like net revenue to fall just under 10%.

Shares were down 9% at the time of writing.

The revenue shortfall will hit profitability hard. Operational EBITDA is now targeted at approximately £75 million, significantly below the £81.6 million market consensus. Management blamed lower project-based revenue, continued client caution, and slower-than-anticipated conversion of new business wins.

S4’s struggles mirror those of WPP, which is also facing difficulties in the current environment.

The company has already implemented cost-cutting measures this year. However, liquidity remains stronger than forecast, with year-end net debt still expected between £100 million and £140 million.