The FTSE 100 experienced a slight decline, falling 0.1% to approximately 9,440. Market sentiment was impacted by a combination of factors including looming fiscal concerns related to the UK government’s upcoming budget, potential tax increases and mixed corporate earnings reports. Investor expectations of interest rate cuts by both the Bank of England and the US Federal Reserve also played a role, alongside cautionary statements from the IMF regarding UK inflation.
- The FTSE 100 fell 0.1% to around 9,440.
- Fiscal concerns and potential tax hikes ahead of the UK government’s November 26 budget are weighing on investors.
- Chancellor Reeves is considering tax hikes and spending cuts, potentially needing to raise about £30 billion.
- Traders are increasing bets on interest rate cuts from both the BoE and the US Fed.
- The IMF cautioned the BoE to proceed carefully, warning UK inflation will likely remain the highest in the G7 through 2026.
- Entain fell 2.4% after reporting weaker Q3 gaming revenue.
- Burberry climbed 3.1% after stronger-than-expected sales from LVMH.
- IAG gained 0.6% after Morgan Stanley initiated coverage with an “Overweight” rating.
The information suggests a cautious outlook for the FTSE 100. Fiscal uncertainty, coupled with persistent inflation concerns, may continue to create volatility. Sector performance appears mixed, with some companies experiencing declines due to disappointing results, while others benefit from positive external factors and analyst ratings. Investors will likely monitor upcoming economic data and policy announcements for further direction.