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Eurozone GDP grows faster than expected as FTSE 100 hits record
The eurozone economy expanded 0.4% in the second quarter of 2026, while UK defence stocks climbed after Rolls-Royce and BAE Systems upgraded profit guidance.
The eurozone economy grew by 0.4% in the second quarter of 2026, according to Eurostat’s preliminary estimate, beating expectations and helping sentiment across European markets, Guardian Economics reported in its business live coverage.
In London, the FTSE 100 rose to a new record even after an initial dip, helped by profit upgrades from defence-linked companies including Rolls-Royce and BAE Systems as investors priced in stronger demand tied to higher defence budgets.
BAE Systems said “sustained increases” in defence budgets around the world led it to upgrade full-year profit forecasts to a range of 10% to 12%, after first-half sales rose 9% year-on-year to £15.8 billion and orders reached £16.4 billion.
Rolls-Royce shares climbed 3.7% and BAE Systems gained 1.1%, reflecting the market impact of the guidance increases, Guardian Business said, as global spending demand supported the sector’s outlook.
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