Market Turmoil as UK's Budget Sparks Economic Concerns

The UK's major stock indexes plummeted to a nearly three-month low due to the new budget's inflationary concerns. Following Finance Minister Rachel Reeves' tax hikes and public spending plans, investor fears increased, leading to shifts in BoE rate cut predictions. This influenced major stock movements.

The UK's main stock indexes dropped sharply to their lowest in nearly three months. Investor concerns over inflation surged after the Bank of England adjusted rate cut forecasts due to Britain's latest expansive budget.

The budget, introduced by Finance Minister Rachel Reeves, featured significant tax hikes—the largest in thirty years—and plans for increased public spending. These moves prompted a re-evaluation of BoE's rate cut scarcity.

Key market players reacted, with homebuilder stocks falling around 6%. Among FTSE 100 shares, Smith + Nephew plummeted 12.5%, while DS Smith rose due to International Paper's acquisition move. Meanwhile, Shell's profits surpassed expectations, partly offsetting weaker segments.

(With inputs from agencies.)