London stocks were expected to edge lower on Monday as investors focus on this week’s Budget.
The FTSE 100 was called for to open around 15 points lower.
Prime Minister Jeremy Hunt is due to table his spring budget in parliament at 12:30 GMT on Wednesday, in what is likely to be the last major economic update before the next general election.
Kathleen Brooks, Research Director XTB“The highlight is expected to be a 2p cut to National Insurance contributions, but the Prime Minister is likely to give with one hand and take away with the other.
“Reports on Monday suggest that the Chancellor plans to recover £9bn through tax increases and spending cuts to cover the NI cuts.The fiscal space available to the Chancellor is expected to be £20bn. This is an average of nearly £30bn available since 2010, highlighting the financial strain the UK is in.
“After the NI cuts, there may only be £10bn to £15bn left for the Prime Minister to hand out electoral sweeteners to increase votes for the Conservative Party. This is the ultimate election budget. With the Conservatives set to lose this election and tax and spending changes likely to be reversed by the next government, this budget is worthless on paper. I have a feeling that it might be possible.
“There are two other factors that need to be considered in parallel with this budget proposal. “That means we don’t expect any major changes on Wednesday. Also worth noting is the OBR’s forecast.” Will the OBR revise its growth forecasts downward to be more in line with the BOE? Could inflation be revised upwards? In any case, the OBR says its forecasts may paint the UK economy in an unfair light. ”
Mr Brooks said he did not expect the Budget to move the direction of UK equities, which have struggled due to a lack of exposure to technology and AI.
In corporate news, Aviva has acquired underwriting syndicate Provitas for £242m, making its first foray into the Lloyds insurance market.
Aviva said the deal includes Provitas’ acquisition of Lloyds Platforms, its corporate members, management agents, international distribution entities and tenant rights to Syndicate 1492.
intertek announced that it has acquired Base Metallurgical Laboratories, a provider of metallurgical testing services in North America, for an undisclosed sum.
The FTSE 100 company said the acquisition strengthens its position in the industry by expanding its geographic footprint and complementing its existing capabilities in geochemistry, mine site laboratories and trade testing.
Base Met Labs addresses the growing demand for mineral testing, particularly in batteries and energy metals, with a focus on critical metals such as gold and copper, the company said.
European regulatory authorities have verified two marketing authorization applications: AstraZenecathe biopharmaceutical giant’s datopotamab deruxtecan product is one step closer to getting the green light to treat two types of cancer.
This validation confirms the completion of the application and begins the scientific review process by the European Medicines Agency’s Committee for Medicinal Products for Human Use.