A sharp rally in defence shares lifted Britain's FTSE 100 to record highs on Monday, as investors cheered the possibility of a military spending surge in Europe.

The dollar also also extended its drop against a basket of major currencies, which has sent the pound up further to touch $1.27, heading for its best day in almost six weeks.

FTSE 100-listed Bunzl, which supports businesses with essential not-for-sale products and services, has lifted its dividend for a 32nd year in row. In today’s annual results, flat revenues of £11.8 billion underpinned a 3.

A sharp rally in defence shares lifted Britain's FTSE 100 to record highs on Monday as investors cheered the possibility of a military spending surge in Europe. The blue-chip FTSE 100 gained 0.7% to touch an all-time closing high,

The blue chip index finished up 61.57 at 8871.31, after hitting a new intraday record of 8,908.82 earlier in the session.