UK budget, data, stock movements and news

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European stocks close lower for second day in a row

European stocks extended the week’s losses as the Stoxx 600 index tentatively closed down 0.5%.

The technology sector posted gains of 0.3%, but all the others remained flat or in negative territory. Mining stocks fell 1.8% to lead the losses, while retail stocks fell 1.5% and oil and gas stocks fell 1.2%.

—Jenni Reid

Pound falls 1.1% and gilt yields rise after UK budget announcement

Sterling was trading around 1.1% lower against the US dollar at $1.1777 in late afternoon trading in London.

It comes shortly after UK Finance Minister Jeremy Hunt unveiled a budget plan that includes £30bn ($35.3bn) in spending cuts and £25bn in tax hikes .

Hunt said it was an attempt to restore Britain’s economic credibility and give ‘the world confidence in our ability to pay our debts’ after a widely condemned mini budget rocked the financial markets.

The independent UK Office for Budget Responsibility has predicted that real household disposable income will fall by 4.3% in 2022-23, the biggest single-year fall since records began in 1956-57.

Yields on UK 10- and 30-year bonds, known as gilts, rose slightly following the announcements. At the same time, short-term gilts increased by 10 basis points. Yields move inversely to prices.

—Jenni Reid

Stocks in motion: Siemens and Centrica up, Ocado and Hellofresh down

germany Siemens and owner of British Gas Centric were the top performers in afternoon trading, gaining 6.4% and 5.6% respectively.

Centrica shares rebounded after falling on news that the UK would raise its windfall tax on energy companies from 25% to 35%.

However, food delivery stocks have withered, with a Berlin-based meal kit company HelloFresh lose 8% and grocery service ocado down 9.5%.

Ocado’s fall follows an analyst note from Kintbury Capital that predicted a 50% decline for the stock.

—Jenni Reid

UK is now in recession, says finance minister

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

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

—Hannah Ward-Glenton

Pound drops as UK Finance Minister Jeremy Hunt delivers budget statement

The pound lost value when UK Finance Minister Jeremy Hunt delivered a budget statement in the fall.

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

—Hannah Ward-Glenton

Stocks in motion: Siemens up 7%, NN Group down 6%

Shares of Siemens climbed after the company beat analysts’ expectations by increasing its fourth-quarter earnings dividend. The move was driven by increased profits across all of Siemens’ industrial businesses and resulted in a 7% increase in the share price.

financial services company NN group Shares fell 6% after the organization posted 2025 targets that fell short of expectations. The Dutch insurer also maintained its buy-back policy.

—Hannah Ward-Glenton

War in Ukraine ‘most important negative factor’ for global economy: IMF chief

CNBC Pro: Should investors get back into tech? Here’s what the pros say and how to redeem it

CNBC Pro: Fed ‘backbone’ is dead, strategist says, shares where to invest right now

Fidelity says the idea that a pivot of the Federal Reserve’s hawkish stance will benefit stocks is “dead.”

Salman Ahmed, global head of macro and strategic asset allocation at the investment management firm, has expressed concern about the performance of equities in the short term and suggests investors consider a different asset class instead. .

Subscribers can learn more here.

—Ganesh Rao

European markets: here are the opening calls

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

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

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

In the UK, Chancellor Jeremy Hunt will announce his latest budget statement on Thursday which is expected to contain billions of pounds in spending cuts and tax hikes.

Revenue comes from Vodafone and Virgin Money on Thursday. Data releases include European car registration data for October.

—Holly Ellyatt

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