FTSE 100 Rebounds Amid Budget Concerns

The UK's FTSE 100 rose 0.8% on Friday after facing three-month lows as Reckitt Benckiser's gains offset inflation worries. The FTSE 250 also increased slightly, with budget concerns affecting spending and tax expectations. Investors remain cautious about rate cuts amid economic growth concerns.


Devdiscourse News Desk | Updated: 01-11-2024 22:41 IST | Created: 01-11-2024 22:41 IST
FTSE 100 Rebounds Amid Budget Concerns
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The UK's FTSE 100 index experienced a notable comeback on Friday, climbing 0.8% following a dip to near three-month lows. The recovery was largely driven by a 7.4% surge in Reckitt Benckiser shares after it, along with Abbott Labs, was cleared of liability in a preterm formula litigation.

Meanwhile, the midcap FTSE 250 index saw a modest increase of 0.5%. However, it remained near recent lows as criticism mounted against Finance Minister Rachel Reeves's budget, which emphasized spending and tax hikes but offered little for economic growth. The budget raised inflation concerns, tempering expectations of imminent rate cuts by the Bank of England.

Investors still anticipate a rate cut of 25 basis points by the BoE next week, though optimism for a December cut has waned. Additionally, investor focus turned to the U.S. presidential election, with polls showing a tight race between Donald Trump and Kamala Harris. Tesco and Boohoo were among stocks making headlines, with movements linked to strategic announcements.

(With inputs from agencies.)

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