Market Turbulence as UK Fiscal Concerns Mount
London equities fell amid fiscal concerns as the U.S. debt outlook worsens with Trump's spending bill. The UK struggles with higher borrowing and volatile bond markets. Noteworthy moves saw easyJet drop 3.6%, while Johnson Matthey soared 30.2% on business sales. QinetiQ gained after a government contract extension.
Amid fiscal turbulence, London's equities experienced broad-based declines on Thursday. Investor sentiment took a hit due to fiscal concerns in the U.S. and the UK government's larger-than-expected budget deficit.
The blue-chip index fell 0.7% by 1037 GMT, halting its five-session winning streak, while the midcap index also saw a 0.7% decrease. These declines coincided with the U.S. House passing President Trump's extensive tax and spending bill, which has stirred fears of a growing trillion-dollar debt in the U.S.
In the UK, borrowing figures exceeded forecasts, adding pressure to the government's finances. Market responses varied, with budget airline easyJet dropping 3.6% following results, while Johnson Matthey's shares soared by 30.2% after a business sale agreement. QinetiQ, conversely, gained 6% following a £1.5 billion contract extension with the UK government.
(With inputs from agencies.)
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