However, much of the market repercussions seem to have been mitigated by the signaling of what today’s budget would imply for businesses, with significant tax increases coming as little surprise.
That is not to say there was no response: the pound dipped 0.5% versus the dollar as Chancellor Rachel Reeves started her statement, but by the end of her speech, it had recovered its losses.
The FTSE 100, Britain’s blue-chip stock index, likewise experienced a daytime decline of about 0.7%. The top 100 firms listed on the London Stock Exchange are more globally oriented and represent the UK’s perceived.
On the other hand, a softer-than-anticipated business budget seemed to support medium- and smaller-sized businesses.
After beginning the day flat, the UK’s more domestically oriented index, the FTSE 250, performed far better, rising by 1%.
The AIM index, which consists of the smallest listed firms, experienced a roughly 4% increase, making it the highest single-day gain since April 2020.
