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Defence shares rise after Andy Burnham appoints John Healey as chancellor
The Guardian World
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 among investors of increased spending on suppliers to the military.
Defence stocks were among the biggest risers on the FTSE 100 on Tuesday morning after the former defence secretary was announced as chancellor after markets closed on Monday. Babcock International rose 7%, BAE Systems was up 3% and Rolls-Royce increased nearly 2% on the FTSE 100. On the FTSE 250, QinetiQ rose nearly 4%.
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