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US stock futures indicated a higher opening on Monday as investors assessed a decline in crude oil prices following two sessions of losses on Wall Street, with attention turning to the Federal Reserve’s monetary policy announcement and earnings from major technology companies.

The expected advance follows a decline in the Nasdaq Composite to its lowest closing level since early August on Friday, while the S&P 500 finished at a one-month low.

Lower share prices following the recent sell-off may also encourage some investors to increase their equity holdings.

However, uncertainty surrounding artificial intelligence investment, monetary policy and developments in the Middle East remains a consideration for financial markets.

Crude Oil Futures Decline After US Military Reports Export Recovery

US crude oil futures fell more than 2% on Monday, reversing part of the previous week’s increase.

The decline followed an announcement by US Central Command (CENTCOM) concerning its support for oil exports from the Gulf region.

According to CENTCOM, US forces have assisted regional partners in exporting more than 1.5 billion barrels of crude oil since the summer.

The military command also said more than 3,000 commercial vessels had successfully travelled through the Strait of Hormuz with US support over the past six months.

The figures indicated that maritime transport and crude shipments had continued despite disruptions associated with the conflict involving Iran.

Russ Mould, investment director at AJ Bell, said the recovery in exports was helping to reduce concerns about the potential impact of further military action.

“The ongoing recovery in Middle Eastern exports is easing some of the concerns surrounding the possibility of renewed American and Israeli attacks on Iran,” Mould said.

Oil prices had risen during the previous week as attacks by Iran-aligned Houthi forces in Yemen against Saudi Arabia added to concerns about regional supply disruptions.

Reports that the United States and Israel could resume military operations against Iran after the November midterm elections also contributed to the increase.

On Friday, US crude futures climbed nearly 4%, returning to levels above $100 per barrel, while Brent crude reached a six-month high.

The subsequent decline on Monday reduced some of the pressure associated with elevated energy prices.

Federal Reserve Expected to Maintain Interest Rates

The Federal Reserve’s monetary policy announcement on Wednesday will be among the principal events for US financial markets this week.

The central bank is widely expected to leave its benchmark interest rate unchanged.

Investors will examine the accompanying statement for indications of how policymakers are evaluating inflation and the possibility of additional rate increases.

Market expectations continue to favour a quarter-percentage-point increase at the Fed’s December meeting.

The outlook for interest rates is particularly relevant to equity valuations and financing costs, including those associated with investment in technology infrastructure.

Trading volumes could remain relatively limited before the announcement as market participants await further guidance.

Technology Earnings Could Influence AI Investment Expectations

Corporate earnings will provide another source of information for investors, particularly following recent declines in technology shares.

Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL), Google’s parent company, are scheduled to report quarterly financial results.

Their announcements will be monitored for evidence of demand trends, profitability and spending on artificial intelligence infrastructure.

Investors have been assessing whether revenue generated from AI products and services will support the substantial capital expenditure required to develop computing capacity.

Concerns about financing requirements and potential investment returns contributed to the recent weakness in technology stocks.

The upcoming results could provide further information about spending plans, operating costs and management expectations for future growth.

Given the companies’ substantial influence on major US equity indices, their financial performance could also affect broader market movements.

Wall Street Extends Losses on Friday

US equities declined on Friday following a sell-off during Thursday’s session, with all three major indices finishing lower.

The Dow Jones Industrial Average recorded the largest percentage decline, falling 652.82 points, or 1.2%, to close at 52,215.16. The index retreated from a one-month closing high reached in the preceding session.

The S&P 500 declined 39.75 points, or 0.5%, to 7,623.68, its lowest closing level in approximately one month.

The Nasdaq Composite fell 53.52 points, or 0.2%, to 25,955.34, ending the session at its lowest level since early August.

For the week, the Dow Jones advanced 0.4%, despite Friday’s decline.

The S&P 500 and Nasdaq recorded weekly losses of 0.5% and 0.7%, respectively.

The market movements reflected concerns about AI-related investments, higher oil prices and uncertainty ahead of the Federal Reserve’s next decision.

Oil Price Increase Affects Airline and Energy Shares

Friday’s sector performance showed differences between companies exposed to higher energy costs and those operating in the oil industry.

Airline shares declined as crude prices increased, with the NYSE Arca Airline Index falling 2.6%.

Fuel is a significant operating expense for airlines, making higher oil prices relevant to their cost outlook.

Gold mining companies also recorded losses after the price of gold declined.

The NYSE Arca Gold Bugs Index fell 2.2%, while pharmaceutical and retail stocks also experienced selling pressure.

Oil services shares moved in the opposite direction.

The Philadelphia Oil Service Index gained 5.5% as crude prices advanced, reflecting increases among companies providing equipment and services to oil producers.

The different sector performances illustrated the effects of commodity price movements on companies with varying operating costs and revenue exposures.

Investors Assess Monetary Policy and Geopolitical Risks

Monday’s expected gains suggest that US equities could recover part of their recent losses, with lower oil prices providing a change from the conditions that affected markets late last week.

The Federal Reserve’s decision on Wednesday and earnings from major technology companies will provide further information for investors assessing interest rates, corporate profitability and AI-related capital expenditure.

Developments in the Middle East will also remain relevant because of their potential implications for oil shipments, energy prices and inflation.

Market movements during the week will reflect how investors respond to these economic, corporate and geopolitical developments.

European stock markets traded mostly higher on Monday, supported by a decline in oil prices as investors prepared for interest rate decisions from major central banks and quarterly earnings announcements from leading technology companies.

The FTSE 100 gained 0.5%, while France’s CAC 40 and Germany’s DAX each advanced 0.9%.

Market attention remained focused on developments in the Middle East, the outlook for monetary policy and the financial performance of companies investing heavily in artificial intelligence infrastructure.

Oil Prices Fall Following Middle East Diplomatic Developments

Oil prices declined by nearly 2% after Saudi Arabia partially resumed operations at King Khalid International Airport in Riyadh and a Qatari delegation arrived in Tehran for diplomatic discussions.

The visit was part of renewed efforts to reduce regional tensions, undertaken in coordination with the United States.

The developments followed disruptions associated with the continuing conflict in the Middle East, which has affected energy markets and raised concerns about regional oil supplies.

The decline in crude prices provided some relief to equity markets, where investors have been assessing the potential effects of higher energy costs on inflation, corporate expenses and consumer demand.

Further developments in diplomatic negotiations and regional security remain relevant to the outlook for oil prices.

Fed, ECB and Bank of Japan Prepare Interest Rate Announcements

Investors are also awaiting monetary policy decisions from the US Federal Reserve, the European Central Bank and the Bank of Japan.

The three institutions are scheduled to announce their decisions between 28 and 30 October.

The meetings come as central banks assess inflation, economic activity and the implications of energy price movements for monetary policy.

Investors will examine the accompanying statements and comments from policymakers for indications of how interest rates may develop over the coming months.

The announcements could influence government bond yields, currency markets and equity valuations.

Technology Earnings to Provide Further Information on AI Spending

Quarterly results from several major US technology companies are also scheduled for this week.

Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Intel (NASDAQ:INTC) and SanDisk (NASDAQ:SNDK) are among the companies expected to report earnings.

The announcements come amid investor scrutiny of spending on artificial intelligence infrastructure and uncertainty about the financial returns from those investments.

Market participants will assess revenue, profitability, capital expenditure and management guidance for information about demand for AI-related products and services.

The results could also provide further indications of how technology companies are financing infrastructure expansion and managing associated costs.

Bolloré and Man Group Shares Rise, Sika Declines

Individual European companies also recorded share price movements following corporate announcements.

French conglomerate Bolloré advanced after reporting its group revenue figures for the third quarter and the first nine months of 2026.

The company’s revenue performance was among the factors drawing investor attention during Monday’s session.

In London, Man Group (LSE:EMG) shares rose following the announcement of an expanded strategic partnership with Japan’s Meiji Yasuda Life Insurance.

The agreement extends the relationship between the UK investment management company and the Japanese insurer.

Meanwhile, shares in Swiss speciality chemicals company Sika (TG:SIKA) declined after the company agreed to acquire Duproof, a Dubai-based manufacturer of waterproofing membranes.

The acquisition represents an expansion of Sika’s activities in construction-related materials.

European Market Outlook

European equities began the week with gains across several major indices as oil prices eased and investors awaited further economic and corporate developments.

Central bank announcements between 28 and 30 October will provide information about the direction of monetary policy, while technology earnings will offer additional evidence about corporate spending and returns associated with artificial intelligence.

Developments in the Middle East and company-specific announcements will remain additional factors for European markets.

US stock index futures advanced on Monday as financial markets prepared for a week of corporate earnings, monetary policy announcements and international political developments.

Crude oil prices declined following reports of diplomatic discussions involving the United States, Iran and Qatar, reversing part of the previous week’s increase.

Investors were also monitoring French government bond markets after Moody’s maintained the country’s sovereign credit rating, while Brazil’s presidential election produced a result that differed from market expectations.

Verizon (NYSE:VZ) is among the first major US companies scheduled to release quarterly results this week.

US Equity Futures Point to Higher Opening

Futures linked to the S&P 500, Nasdaq 100 and Dow Jones Industrial Average moved higher before Monday’s opening bell.

At 04:43 ET (08:43 GMT), S&P 500 futures were up 23 points, or 0.3%, while Nasdaq 100 futures gained 64 points, equivalent to 0.2%.

Dow futures increased by 241 points, representing a 0.5% advance.

The movements followed declines across all three major US indices on Friday.

Market sentiment during the previous session had been affected by several developments, including concerns about the financing of artificial intelligence infrastructure, expectations for interest rates and rising geopolitical tensions.

Investors have been assessing the potential financial effects of substantial AI-related capital expenditure, particularly where companies are using debt to support investment.

The possibility that borrowing costs could remain elevated for an extended period has also influenced expectations for corporate profitability and equity valuations.

Meanwhile, US Treasury bonds attracted buying interest as investors evaluated uncertainty in international financial markets.

Some analysts linked the demand to a preference for assets perceived as relatively secure during periods of increased market volatility.

Brent Falls to $114.92 as Diplomatic Efforts Continue

Oil prices declined on Monday following reports that Qatari representatives had travelled to Tehran over the weekend to discuss possible measures to reduce tensions between Iran and the United States.

Brent crude futures fell 1.6% to $114.92 per barrel, while US West Texas Intermediate futures declined 2.0% to $101.25 per barrel.

The movements followed a weekly increase of more than 6% in Brent, which had reached its highest weekly closing price since 2022.

The previous week’s rise was associated with concerns about the possibility of renewed US military action against Iran and further disruption to energy supplies in the Middle East.

Recent media reports suggested that President Donald Trump was considering additional strikes against Iran after the November US midterm elections.

Speaking to Fox News on Sunday, Trump said it was “getting to be decision time” on whether to undertake further military action or reach an agreement with Tehran.

Iranian officials had previously warned of retaliatory action in response to additional attacks.

Tensions involving Saudi Arabia and Iran-backed Houthi forces in Yemen have also contributed to uncertainty surrounding regional energy infrastructure.

Exchanges of strikes raised concerns about potential interruptions to oil transportation and production.

Although Monday’s decline in crude prices followed reports of diplomatic contacts, the possibility of further regional disruption remained under consideration by energy market participants.

Corporate Earnings Calendar Includes Verizon and Major Technology Companies

A substantial number of US companies are scheduled to report quarterly earnings this week, providing investors with updated information about business conditions and investment plans.

Approximately 25% of S&P 500 companies have already published their latest results.

Analysts at Vital Knowledge said the earnings reported so far indicated that underlying demand had remained resilient.

They also identified cost management and higher selling prices as factors supporting company profits.

Investors will be assessing whether similar conditions are evident in the results still to be published.

Technology earnings will be closely examined following recent declines in shares associated with artificial intelligence investment.

Market participants are particularly interested in how companies are financing large infrastructure projects and whether spending is translating into revenue and cash generation.

Verizon (NYSE:VZ) is scheduled to release its quarterly figures before the opening of US trading on Monday.

The telecommunications company faces competition from established providers AT&T and T-Mobile, as well as newer communications services linked to SpaceX.

Its results will offer further information about operating trends and competitive conditions within the US telecommunications industry.

French Government Bonds Recover After Moody’s Rating Decision

French government bond prices increased on Monday, with the yield on the country’s benchmark 10-year debt moving lower.

The changes followed a weekend during which large demonstrations appeared to ease, although further industrial action has been announced.

The protests, which initially involved students, have broadened to include concerns about wages, household expenses and the provision of public services.

Trade union representatives have called for further demonstrations next weekend and a nationwide strike on 5 November.

France’s sovereign credit position also remained in focus after Moody’s confirmed its Aa3 rating on Friday.

The agency’s decision came despite expectations among some investors that it might revise its assessment.

French bond futures rose following the announcement, while the euro strengthened.

The developments provided additional information for investors evaluating France’s fiscal outlook and the potential effects of continued political and social uncertainty.

However, the country’s budgetary challenges and the possibility of further demonstrations remain relevant to financial market expectations.

Brazil’s Election Result Prompts Market Reassessment

Political developments in Brazil also influenced international trading after Luiz Inácio Lula da Silva won a fourth presidential term.

With 99% of votes counted, Brazil’s Superior Electoral Court reported that Lula had received approximately 51.8% of the vote.

His opponent, Senator Flávio Bolsonaro, secured around 48.2%.

The result followed a first round in which Bolsonaro had led the contest.

Bolsonaro subsequently disputed the election outcome and requested that the vote be annulled.

He alleged that the Supreme Court had interfered with the electoral process by extending voting hours in certain areas.

Those allegations were presented as Bolsonaro’s claims and had not been established as findings of electoral misconduct.

Analysts at Deutsche Bank said financial markets had increasingly positioned for a Bolsonaro victory before the second-round result.

Following the announcement, a Tokyo-listed exchange-traded fund tracking Brazilian equities declined during Asian trading.

Capital Economics also commented on the implications for Brazil’s financial markets and economic policy outlook.

In a research note, its analysts said Lula’s victory could reduce expectations for fiscal reforms intended to improve public finances and support growth.

The firm anticipated potential declines in Brazil’s currency and equity markets, alongside an increase in government bond yields.

The forecasts reflected Capital Economics’ assessment and were not confirmed market outcomes.

Investors Assess Earnings, Monetary Policy and International Developments

The week’s financial market calendar includes several events that could influence asset prices and investor expectations.

Corporate earnings will provide information about company profitability, demand conditions and the scale of planned investment, including expenditure on artificial intelligence infrastructure.

Central bank meetings will also be monitored for decisions on interest rates and indications about future monetary policy.

Meanwhile, developments involving the United States and Iran remain relevant to international oil markets.

Political and fiscal developments in France, together with the outcome of Brazil’s presidential election, provide additional considerations for global investors.

Monday’s gains in US stock futures and the decline in crude oil prices marked the initial market response ahead of these scheduled announcements and ongoing developments.

European stock markets traded slightly higher on Monday as investors assessed diplomatic efforts to reduce tensions in the Middle East, a decline in crude oil prices and a series of upcoming central bank decisions.

The pan-European STOXX 600 index was broadly unchanged after losing more than 1% during the previous week, when technology shares declined and political developments in France contributed to market uncertainty.

Germany’s DAX advanced 0.4%, while France’s CAC 40 gained 0.6%. Italy’s FTSE MIB rose 0.5%, while London’s FTSE 100 declined 0.1%.

The UK index was affected by losses in energy companies BP (LSE:BP.) and Shell (LSE:SHEL), both of which are scheduled to publish financial results during the week.

Crude oil futures fell approximately 1% following reports of diplomatic discussions involving Qatar, Iran and the United States aimed at reducing regional tensions.

Investors were also preparing for quarterly earnings announcements from major US technology companies, including Alphabet, Microsoft and Amazon.

Oil Prices Retreat Following Reports of Diplomatic Discussions

International crude oil prices declined on Monday following reports that Qatari mediators had visited Tehran on Sunday to coordinate diplomatic efforts with Washington.

The discussions were reportedly intended to reduce tensions in the Middle East following recent attacks on energy and transport infrastructure.

Oil futures fell approximately 1%, reversing part of the previous week’s gains.

Brent crude had increased 6.2% over the preceding week, reaching its highest weekly closing level since mid-2022.

The increase followed coordinated drone and missile attacks by Houthi forces targeting infrastructure in Saudi Arabia.

Those developments had raised concerns about potential disruptions to regional energy supplies and international shipping routes.

Monday’s decline in crude prices reduced some of the immediate pressure associated with higher energy costs, particularly for European economies that depend on imported oil and gas.

However, prices remained elevated following the previous week’s increase, leaving energy costs and their potential inflationary effects among the factors being monitored by financial markets.

Federal Reserve Expected to Hold Rates as December Hike Expectations Increase

Investors are awaiting monetary policy decisions from several major central banks this week, with particular attention on the Federal Reserve, European Central Bank and Bank of Japan.

Money markets currently expect the Federal Reserve to maintain its benchmark interest rate within the 3.75%–4.00% range at its upcoming meeting.

However, interest rate swaps indicate an estimated 80% probability of a 25-basis-point increase in December.

These market expectations reflect concerns that higher energy prices could contribute to persistent inflationary pressures.

An increase in oil prices can affect consumer prices through fuel, transport and production costs, although the broader inflationary impact depends on factors including demand conditions and the duration of the price increase.

The Federal Reserve’s decision and accompanying policy commentary will provide further information about how officials are assessing inflation, economic activity and interest rate expectations.

Market-implied probabilities remain subject to change as new economic information becomes available.

ECB and Bank of Japan Decisions Also in Focus

The European Central Bank and Bank of Japan are also expected to leave their respective policy rates unchanged at this week’s meetings.

Nevertheless, financial markets are pricing in the possibility of additional monetary tightening before the end of the year or early in the following quarter.

The expectations reflect concerns about the effect of elevated energy prices on inflation.

For the ECB, the relationship between imported energy costs, consumer prices and economic growth remains relevant to its assessment of monetary conditions across the eurozone.

The Bank of Japan faces a different economic and monetary policy environment, although energy costs also influence domestic price developments.

Investors will examine the statements accompanying both decisions for indications of how policymakers are assessing inflation risks and the potential timing of future rate changes.

The expected decisions to maintain current rates do not establish whether or when subsequent increases will occur.

Alphabet, Microsoft and Amazon Earnings Put AI Spending Under Scrutiny

Corporate earnings will provide another focus for international equity markets this week.

Approximately one-third of companies in the S&P 500 are scheduled to report quarterly results, including major technology groups Alphabet (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN).

Investors are expected to pay particular attention to capital expenditure plans associated with artificial intelligence infrastructure and cloud computing.

Technology shares declined during the previous week amid questions about the scale of AI-related investment, the use of debt financing and the time required for those investments to generate financial returns.

The upcoming results will provide updated information about revenue growth, operating profitability, cash generation and planned expenditure.

Management guidance on capital investment will also be relevant to assessing future demand for data centre equipment and semiconductor manufacturing technology.

ASML and ASM International Among European Companies Exposed to AI Investment Trends

Developments in US technology spending are also relevant to European semiconductor equipment manufacturers.

ASML (EU:ASML) and ASM International (EU:ASM) supply equipment used in semiconductor production and are therefore exposed to investment decisions across the global chip manufacturing industry.

Capital expenditure plans announced by major cloud computing companies can influence expectations for demand throughout the semiconductor supply chain.

However, the relationship between spending by US technology groups and equipment orders received by European manufacturers is not necessarily immediate.

Demand also depends on semiconductor producers’ investment schedules, manufacturing capacity requirements and technology development plans.

The forthcoming earnings announcements from Alphabet, Microsoft and Amazon will provide additional information for investors assessing these industry trends.

Moody’s Maintains France’s Sovereign Rating Despite Fiscal Concerns

French financial markets also received an update on the country’s sovereign credit position after Moody’s decided not to downgrade France’s credit rating late Friday.

The decision came amid political uncertainty surrounding President Emmanuel Macron’s proposed budget and continuing domestic unrest.

French government bonds had experienced selling pressure during the previous week, with the yield on the benchmark 10-year bond moving above 5%.

The yield reached its highest level since 2002, according to the market data cited.

Bond yields generally move inversely to prices, meaning that an increase in yields is associated with a decline in the market value of existing bonds.

Moody’s decision to maintain France’s rating removed the immediate prospect of a downgrade by that agency, although it did not resolve the underlying fiscal and political issues.

Investors continue to monitor the government’s budget plans, public borrowing requirements and developments affecting France’s sovereign debt market.

European Markets Await Policy Decisions and Corporate Results

Monday’s trading reflected several developments affecting European equities, including lower oil prices, diplomatic activity in the Middle East and the approaching monetary policy announcements.

The STOXX 600 remained broadly stable after the previous week’s decline, while Germany, France and Italy recorded modest gains.

Investors will be assessing the Federal Reserve, ECB and Bank of Japan decisions alongside earnings announcements from major US technology companies.

The outlook for energy prices and the financial position of France will also remain relevant to European markets.

Together, these developments will provide additional information about inflation expectations, corporate investment and economic conditions during the remainder of the week.

The FTSE 100 moved higher on Monday, recovering from an earlier decline as mining shares advanced alongside gold prices, while crude oil futures fell amid developments in the Middle East.

London’s benchmark index gained 0.47% by 08:20 GMT, reversing losses recorded earlier in the session. Investors were also assessing the outlook for UK fiscal policy ahead of Wednesday’s Budget announcement.

European equities traded higher, with Germany’s DAX increasing 0.57% and France’s CAC 40 advancing 0.68%.

Sterling weakened 0.14% against the US dollar to $1.3358.

Gold Mining Shares Rise as Precious Metal Prices Increase

Gold producers were among the gainers on the London market as bullion prices advanced.

Fresnillo (LSE:FRES) shares rose 2.35%, while Endeavour Mining (LSE:EDV) gained 1.27%.

Gold futures increased 0.50% to $4,027.77 per ounce, while spot gold rose 0.47% to $4,014.16 per ounce.

The increase in gold prices coincided with gains in precious metals mining stocks, contributing to the FTSE 100’s recovery from its earlier decline.

Mining companies can be sensitive to movements in commodity prices because changes in the value of their output may affect revenue and operating margins.

The gains came as investors continued to assess geopolitical developments and their potential implications for global financial and commodity markets.

Brent Crude Falls 1.44% Amid Middle East Diplomatic Developments

Oil prices declined during Monday’s session as investors monitored diplomatic and security developments involving Iran and other regional governments.

Brent crude futures fell 1.44% to $110.10 per barrel, while US West Texas Intermediate futures declined 1.89% to $101.33.

Saudi Arabia, Pakistan and Turkey were scheduled to hold security discussions with Iran in Tehran on Monday.

The meeting would represent the first high-level engagement between Tehran and all three members of the Mecca Joint Defence Agreement.

The talks formed part of continuing regional diplomatic activity following the outbreak of the conflict involving Iran in February.

Market participants were also assessing the implications of shipping conditions through the Strait of Hormuz, a major route for international energy exports.

US Military Reports Continued Oil Shipments Through Strait of Hormuz

US Central Command said American forces had assisted Gulf states in exporting more than 1.5 billion barrels of oil through the Strait of Hormuz since the summer.

According to CENTCOM, more than 95% of over 3,000 vessel transits had been completed safely during the period.

The figures provided an indication of shipping activity through the waterway despite continuing regional security concerns.

Meanwhile, International Energy Agency Executive Director Fatih Birol said he did not see a credible route for global energy markets to return to their pre-war conditions in 2027.

His comments reflected the potential longer-term implications of the conflict for energy supply, infrastructure and international trade.

The war began following US-Israeli strikes on Iran on 28 February.

Iran and Israel Address Regional Security Outlook

Diplomatic developments remained in focus following comments from officials in Iran and Israel.

Israeli Defence Minister Israel Katz said Israel did not intend to initiate an attack on Iran before the country’s elections on Tuesday.

His remarks followed a Channel 12 report suggesting differences between Prime Minister Benjamin Netanyahu and military chief Eyal Zamir.

Katz rejected the suggestion that Israel was preparing an attack ahead of the vote.

Separately, Iranian foreign ministry spokesman Esmaeil Baghaei told German broadcaster ARD that Tehran had remained open to negotiations.

He said communications were continuing through intermediaries, while describing Washington’s position as seeking Iran’s complete surrender.

The statements came ahead of the planned security discussions in Tehran involving Saudi Arabia, Pakistan and Turkey.

UK Investors Await Wednesday’s Budget Announcement

Domestic fiscal policy remained another consideration for London-listed equities ahead of Wednesday’s Budget.

According to the Financial Times, Chancellor John Healey is expected to announce £20.4 billion in funding for the National Wealth Fund and the British Business Bank.

The reported allocation would relate to government-backed investment and business financing initiatives.

Investors are awaiting further details of the Budget, including potential changes to taxation, public expenditure and investment policy.

Prime Minister Andy Burnham also addressed the government’s political and economic priorities in an interview with ITV.

He said the government was not proposing to rejoin the European Union during the current parliamentary term and ruled out an early general election.

Housing Secretary Angela Rayner separately told the BBC that the prime minister wanted an open discussion about the trade-offs involved in policy decisions.

The comments came as financial markets assessed the potential direction of government policy ahead of the fiscal announcement.

European Equities Advance as Sterling Weakens

The recovery in UK equities was accompanied by gains across major continental European indices.

Germany’s DAX rose 0.57%, while France’s CAC 40 increased 0.68%.

In currency markets, sterling declined 0.14% against the US dollar to $1.3358.

Commodity price movements remained mixed, with gold trading higher and crude oil futures moving lower.

The FTSE 100’s 0.47% increase reflected gains recorded by the time of the market snapshot, rather than a final closing level.

Investors continued to monitor the forthcoming UK Budget, developments in Middle East diplomacy and changes in global energy prices.