UK budget, data, stock moves and news

European stocks fell for the second straight day

European stocks extended losses for the week as the Stoxx 600 index temporarily fell 0.5%.

The technology sector posted gains of 0.3 percent, while all others were either flat or in negative territory. Mining stocks fell 1.8 percent, led by losses in lead, retail stocks fell 1.5 percent, and oil and gas stocks fell 1.2 percent.

– Jenny Reid

According to the UK budget announcement, the pound falls by 1.1% and gold production rises

Sterling It was down about 1.1% against the US dollar in late afternoon trading in London at $1.1777.

It comes shortly after UK Chancellor of the Exchequer Jeremy Hunt unveiled a fiscal plan that includes £30 billion ($35.3 billion) in spending cuts and £25 billion in tax increases.

Hunt said it was an attempt to restore Britain’s economic confidence and “give the world confidence in our ability to pay our debts” after the widely-condemned junior budget rocked financial markets.

The UK’s independent Office for Budget Responsibility has forecast that real household income will fall by 4.3% in 2022-23, the biggest one-year decline since records began in 1956-57.

Yields on the UK’s 10-year and 30-year bonds, known as gilts, were higher following the announcements. Meanwhile, short-dated gilts rose by 10 basis points. Commodities move inversely with prices.

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– Jenny Reid

Stocks on the move: Siemens and Centrica up, Ocado and Hellofresh down

of Germany Siemens and owned by British Gas Centrica were the best performers in afternoon trade, gaining 6.4% and 5.6%, respectively.

Centrica shares rose to 35% after news that Britain will increase its tax on energy firms to 25%.

However, food delivery stocks, including the Berlin-based meal-kit firm, have dried up HelloFresh 8% loss and sales service Ocado 9.5% down.

Ocado’s plunge followed an analyst note from Kintbury Capital predicting a 50 per cent decline for the stock.

– Jenny Reid

The finance minister says Britain is now in recession

According to statistics from the Office for Budget Responsibility, announced by Chancellor of the Exchequer Jeremy Hunt, Britain is currently in recession.

Hunt said “difficult decisions” will be taken to tackle inflation amid a cost-of-living crisis.

– Hannah Ward-Glenton

Sterling falls as UK Chancellor of the Exchequer Jeremy Hunt delivers the budget statement

Sterling fell as UK Chancellor of the Exchequer Jeremy Hunt delivered an autumn financial statement.

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The currency fell as much as 0.69% against the dollar as Hunt announced tax increases for high earners and a temporary tax on electricity generators.

– Hannah Ward-Glenton

Shares on the move: Siemens rose 7%, NN Group fell 6%

Shares from Siemens rose after the company beat analysts’ expectations and increased earnings on fourth-quarter earnings. The move was driven by increased profits across all of Siemens’ industrial businesses and led to a 7% increase in share price.

Financial services company Group NN Shares fell 6% after the organization posted 2025 targets that were below expectations. Dutch insurance also continued its purchase policy.

– Hannah Ward-Glenton

The war in Ukraine is ‘one of the most important negative factors’ for the global economy: IMF chief

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Fidelity says the notion that a pause in the Federal Reserve’s hawkish stance will benefit equities is “dead.”

Salman Ahmed, global head of macro and strategic asset allocation at the investment management firm, said he was concerned about short-term stock performance and suggested investors consider a different asset class instead.

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– Ganesh Rao

European Markets: Here are the opening calls

European markets will open mixed on Thursday as political uncertainty continues in the region.

According to IG data, the FTSE index of England is expected to decrease by 21 points to 7,348, the DAX of Germany to increase by 5 points to 14,239, the CAC of France to decrease by 2 points to 6,605 and the FTSE MIB of Italy to decrease by 40 points to 24,739.

Global markets will be watching developments in Ukraine as the fallout from a missile that landed in Poland continues. NATO said Ukraine’s air defenses were likely trying to intercept Russian missiles, but Ukraine said it wanted evidence that its forces were behind the attack that killed two Polish civilians.

In the UK, Prime Minister Jeremy Hunt will unveil his latest budget statement on Thursday which is expected to include billions of pounds of spending cuts and tax hikes.

The earnings come from Vodafone and Virgin Money on Thursday. The data releases include European car registration data for the month of October.

– Holly Elliott


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