The FTSE 100 experienced a day of little movement, fluctuating around the 9,600 mark. This tepid performance occurred as investors considered the implications of the finance minister’s budget statement, which was preceded by the unintentional release of key forecasts.
- The FTSE 100 hovered around the 9,600 level.
- The Office for Budget Responsibility (OBR) briefly published its forecasts online ahead of the official announcement.
The lack of decisive movement suggests market participants are weighing competing factors. The increased fiscal headroom could be seen as a positive, providing the government with more flexibility. However, the projected rise in the tax burden and revised inflation forecasts, coupled with lowered productivity assumptions, may be tempering enthusiasm. The mixed signals contribute to the FTSE 100’s holding pattern as investors await further clarity.