London stocks closed Monday in negative territory as the UK eagerly awaits the budget announcement from the new Labour government. Joining a regional retreat of European blue-chip indices, the FTSE 100 index settled 0.48% lower. British Finance Minister Rachel Reeves is set to reveal her budget on October 30.
Prime Minister Keir Starmer's Labour Party earlier pledged not to raise taxes on 'working people' as a key part of its manifesto for the forthcoming 2024 general election in July. However, the government is under increasing pressure to implement an investment boost in the upcoming budget. As the anticipation builds, the UK will first receive an update on its private sector economy this Thursday.
According to Daiwa Capital Markets, 'While the composite index declined in September by 1.2 points to 52.6, business expectations of future output remained above their long-run average. Overall, the composite PMI is expected to be broadly unchanged this month, consistent with ongoing moderate expansion supported by services and manufacturing growth.' In addition to the budget news, other UK economic data set for release within the week include the public sector finance statistics for September, scheduled to be released on Tuesday, and the GfK consumer confidence index for October, due on Friday.
On the corporate front, precious metals mining company Fresnillo emerged as the top gainer among London-listed blue-chip companies, surging 6.33% amid record prices for silver and gold. Conversely, British testing laboratories firm Intertek Group logged the steepest decline, falling 3.85%..