Defensive stocks lift FTSE 100 at start of pivotal week for central banks - reuters.com

Defensive sectors led the FTSE 100 higher at the start of a week investors widely view as pivotal for central bank policy. Companies whose revenues tend to hold up relatively well regardless of the economic cycle—such as consumer staples, utilities and healthcare—drew buying interest as markets awaited key interest rate decisions and guidance from major central banks.

The move matters because leadership by defensive names often signals a more cautious tone. When investors favour steadier cash flows over cyclical, economically sensitive businesses, it can indicate reduced appetite for risk ahead of uncertain events. Rate decisions and policy commentary are among the biggest potential catalysts for equities, since they influence borrowing costs, currency moves and the valuation of future earnings.

What to watch: the tone of central bank statements, any shift in rate expectations, and whether defensive leadership persists or fades once policy uncertainty clears. A rotation back into cyclical sectors would suggest renewed confidence; continued defensiveness may point to lingering caution.