Defence shares rise after Andy Burnham appoints John Healey as chancellor
Babcock and BAE Systems benefit as markets hope former defence secretary will increase spending on sector Business live – latest updates Shares in defence companies have risen sharply after Andy Burnham appointed John Healey as chancellor, prompting hope...
Defence company shares climbed sharply on Tuesday morning after Andy Burnham appointed John Healey as chancellor, with investors betting that the former defence secretary could help channel more spending towards military suppliers.
The move lifted several names across the UK market, with defence stocks among the strongest performers on the FTSE 100. Babcock International led the rise, gaining 7%, while BAE Systems added 3%. Rolls-Royce also moved higher, up nearly 2%. On the FTSE 250, QinetiQ rose by almost 4%.
The rally followed the announcement after markets closed on Monday, giving traders their first chance to react when the London market reopened. The response suggested that investors see Healey’s appointment as potentially favourable for the sector, given his previous role as defence secretary.
Market moves of this kind often reflect expectations about future policy direction as much as immediate financial results. In this case, the prospect of a chancellor with defence experience appeared to strengthen confidence in companies linked to procurement, equipment and wider military support services.
The gains came against a broader backdrop of market trading that was not detailed in the feed, but the immediate reaction in defence names was clear. For Babcock, BAE Systems, Rolls-Royce and QinetiQ, the early session advance placed them among the day’s standout risers.
This report is based on a monitored public feed and reflects market reaction described by The Guardian Business. Source attribution: The Guardian Business. Source: The Guardian Business - https://www.theguardian.com/business/2026/jul/21/defence-shares-rise-andy-burnham-john-healey-babcock-bae-systems
