UK Finance Woes: Market Shakes as Stocks Tumble
UK shares fell as concerns over the country's finances mounted. The FTSE 100 and midcap index slipped due to rising 30-year borrowing costs and falling sterling. Finance Minister Rachel Reeves is expected to announce tax hikes in her budget. Key sectors like banking, real estate, and retail saw notable decreases.
On Tuesday, UK shares experienced a downturn amid growing investor concerns over the nation's financial health. The blue-chip FTSE 100 index declined by 0.3% by 1013 GMT, with the midcap index falling 1.4% to its lowest point in more than two months.
As Britain's borrowing costs for 30-year gilts increased to their highest since May 1998, sterling plunged almost 1%. Investors are skeptical about the UK's fiscal stability, with Finance Minister Rachel Reeves expected to introduce tax hikes in her autumn budget, aiming to meet fiscal targets but potentially stalling economic momentum.
A sharp drop was observed across sectors, including banking, real estate, and retail. Key players like NatWest, Barclays, and Lloyds each lost around 1%. The energy sector noted a 1.4% gain, buoyed by rising oil prices. Precious metal miners and healthcare stocks also saw positive movement.
(With inputs from agencies.)
ALSO READ
Solfin Partners with Japanese Institution to Boost Solar Finance
Global Market Turmoil: Stocks Tumble and Bond Yields Surge
Revolutionizing Finance: Next-Gen GST Reforms Set to Empower Small Businesses
Africa Venture Finance Programme Brings Leading VC Managers to Oxford for Growth
Market Movements: Gold Soars, Stocks Surge Amid Economic Data Anticipation
Google News