BAE Systems Drives FTSE 100 Gains with 14% Earnings Rise

BAE Systems reported a 14% increase in full-year earnings, reaching £3.02 billion, driven by strong demand and a robust order backlog. This positive performance contributed to an 8.96% rise in its share price, outperforming the FTSE 100, which also saw gains due to investor optimism regarding increased UK defense spending. The FTSE 100 index rose 0.4% on the same day, with BAE Systems and Rolls-Royce leading the charge as defense stocks surged. Analysts attribute this rally to anticipated higher defense budgets amid ongoing geopolitical tensions, particularly related to Ukraine. Comments from NATO leaders have further fueled hopes for increased defense spending across Europe, prompting investors to adjust their portfolios accordingly. The broader market also benefited from positive movements in financial stocks as lenders rebounded from previous profit-taking.