"The FTSE 100 has enjoyed tentative gains at the open, pushing higher in anticipation of a UK budget that finally draws the line under a period of great uncertainty and concern for businesses and workers alike. The chancellor has already drip fed some of the giveaways, with the minimum wage hiked by 4.1%. It isn't a great start for those hoping this budget would be less inflationary than her last."
"After all, the annual CPI figure remains distorted by April's 1.2% surge as the energy price cap hike coincided with policy measures of higher minimum wage and NI contributions for businesses. Nonetheless, with Reeves promising to bring down the cost of living, there is a hope that this time around we will see some relief to household expenses through reduced green taxes on electricity."
"Traders are becoming increasingly focused on Japan as a major region of potential volatility and growth. Government plans to embark upon a $135bn stimulus plan have raised concerns, sparking a fresh surge in bond yields. That in turn creates a potential problem for those in the US, with the crucial Japan demand likely to dry up if the rate differentials continue to narrow."
The FTSE 100 opened higher ahead of a UK budget expected to end a period of uncertainty for businesses and workers. The minimum wage was raised by 4.1%. Annual CPI remains distorted by April's 1.2% surge as an energy price cap increase coincided with higher minimum wage and employer NI contributions. There is hope for household relief through reduced green taxes on electricity. Recent declines in UK GDP (-0.1%), Rightmove house prices (-1.8%) and retail sales (-1.1%) indicate economic weakness. Traders are increasingly focused on Japan, where a $135bn stimulus plan and possible BoJ rate hike have lifted bond yields and elevated volatility risks.
Read at London Business News | Londonlovesbusiness.com
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