UK budget, data, stock movements and news

European stocks closed lower for the second day in a row

European stocks extended losses for the week as the Stoxx 600 temporarily closed down 0.5%.

The technology sector posted a gain of 0.3%, but all other sectors were either flat or in negative territory. Mining stocks fell 1.8% to top the losses, while retail stocks fell 1.5% and oil and gas stocks fell 1.2%.

– Jenny Reed

Sterling fell 1.1% and gold yields rose after the UK budget announcement

Sterling pound It was trading down about 1.1% against the greenback at $1.1777 during afternoon trade in London.

This comes shortly after UK Finance Minister Jeremy Hunt Unveil a financial plan That involves £30 billion ($35.3 billion) in spending cuts and £25 billion in tax increases.

Hunt said it was an attempt to restore Britain’s economic credibility and give “the world’s confidence in our solvency” after The mini-budget was widely condemned Financial markets shook.

The UK’s independent Office for Budget Responsibility predicted that real disposable income for households would fall by 4.3% in 2022-23, the largest drop in a single year since records began in 1956-57.

British 10- and 30-year bond yields, known as gilts, rose in the wake of the announcements. Meanwhile, short-term British Treasury notes rose by 10 basis points. Yields move inversely to prices.

– Jenny Reed

Stocks on the move: the rise of Siemens and Centrica, Ocado and HelloFresh

Germany Siemens And owner of British Jazz Centrica They were the best performers in the afternoon trade, gaining 6.4% and 5.6%, respectively.

Shares of Centrica rebounded after falling on the news that the UK would do so Unexpected tax increase On energy companies from 25% to 35%.

However, food delivery stocks have fallen, with the Berlin-based meal kit company falling behind HelloFresh 8% loss and grocery service Ocado down 9.5%.

Ocado’s drop came on the heels of an analyst note from Kintbury Capital predicting a 50% drop in the stock.

– Jenny Reed

The Chancellor of the Exchequer says the UK is now in a recession

The UK is now in recession, according to the Office for Budget Responsibility statistics, Finance Minister Jeremy Hunt announced.

Hunt said “difficult decisions” would be taken to tackle inflation amid the cost of living crisis.

– Hannah Ward Glinton

The British pound falls as UK Finance Minister Jeremy Hunt delivers the budget statement

The pound sterling fell in value to British Finance Minister Jeremy Hunt He made a financial statement for the fall.

The currency fell as much as 0.69% against the dollar as Hunt announced tax increases for high earners and a temporary tax on electricity generators.

– Hannah Ward Glinton

Stocks on the move: Siemens up 7% and NN Group up 6%

shares Siemens It jumped after the company beat analyst expectations by increasing its dividend on fourth-quarter earnings. The move was driven by increased profits across all of Siemens’ industrial businesses, and also led to a 7% increase in the share price.

Financial services company NN group Shares fell 6% after the organization announced a 2025 goal that fell short of expectations. The Dutch insurance company also maintained a buy-back policy.

– Hannah Ward Glinton

Head of the International Monetary Fund: The war in Ukraine is the “single most important negative factor” for the global economy

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CNBC Pro: The Fed’s “pivot” is dead, says the strategist, who shares where to invest now

The idea that the Fed’s hawkish stance will benefit stocks is “dead,” says Fidelity.

Salman Ahmed, global head of macro and strategic asset allocation at the investment management firm, said he is concerned about the stock’s short-term performance and suggests an investor should consider a different asset class instead.

Subscribers can read more here.

– Ganesh Rao

European Markets: Here are the opening calls

European markets are set to open mixed on Thursday as political uncertainty persists in the region.

The UK’s FTSE is expected to open 21 points lower at 7,348, Germany’s DAX is up 5 points at 14,239, France’s CAC is down 2 points at 6,605, and Italy’s FTSE MIB is up 40 points at 24,739, according to data from IG.

Global markets will be watching developments in Ukraine as the fallout from a missile strike on Polish soil continues. NATO said it was likely that Ukrainian air defenses were trying to intercept Russian missiles, but Ukraine said it wanted to see evidence that its forces were behind the strike that killed Polish civilians.

In the UK, Chancellor Jeremy Hunt will release his latest financial statement on Thursday which is expected to contain billions of pounds of spending cuts and tax increases.

Earnings come from Vodafone and Virgin Money on Thursday. Data releases include European vehicle registration data for the month of October.

– Holly Ellytt

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