UK Stock Market Wavers Ahead of New Government Budget

The UK's FTSE 100 and FTSE 250 indices experienced declines due to mixed corporate earnings and investor caution ahead of the government's budget announcement. The medical equipment sector suffered significant drops, while NatWest rose sharply. Consumer confidence hit its lowest since March amidst tax hike concerns.

The UK's blue-chip stock market struggled on Friday, heading for weekly losses as investors evaluated varied corporate earnings. All eyes are on the new government's forthcoming budget. By 0930 GMT, both the FTSE 100 and the mid-cap FTSE 250 showed modest shifts, down and up respectively, setting them on course for weekly declines.

The medical equipment industry was notably hit, declining by 2% alongside a weekly drop. Airtel Africa tumbled to its lowest since September after reporting a notable fall in half-yearly profits. Contrastingly, NatWest surged by 4%, moving to its highest level since 2011, on the back of an upgraded 2024 income forecast.

As the fiscal announcement looms on October 30, finance minister Rachel Reeves grapples with increasing tax revenues to fund public services and infrastructure. A recent report highlights efforts to revise fiscal policies. Meanwhile, consumer confidence plummeted amidst potential tax hike worries.

(With inputs from agencies.)