London Stock Market Jitters Amid Budget Anticipation

The London stock market saw declines, influenced by corporate earnings and anticipation of the new government's budget. Notable movements included losses in medical equipment stocks and mixed performances in banking sectors, with a focus on fiscal challenges for finance minister Rachel Reeves.

London's financial market witnessed a dip on Friday as investors grappled with mixed corporate earnings while eagerly awaiting the new government's first budget. The FTSE 100 index dropped by 0.3%, with a slight gain of 0.1% for the mid-cap FTSE 250, though both ended the week with declines.

The medical equipment sector of the FTSE 350 was heavily affected, falling 2.5%, primarily due to losses from Smith & Nephew. Financial services faced turmoil, highlighted by a 25% drop in Close Brothers Group's shares and a 7.3% fall for Lloyds following a court ruling on motor finance brokers' transparency.

On a brighter note, NatWest saw a rise of 0.6% after upping its 2024 income forecast. As the budget nears, UK's finance minister Rachel Reeves confronts the dual challenges of enhancing public services and adjusting fiscal rules, amid dampened consumer confidence and industry-specific fluctuations.

(With inputs from agencies.)