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On Budget day the UK’s leading index has closed higher on the day, despite remaining broadly flat in the afternoon session.
London’s leading equities showed little reaction to the ‘Budget for Growth’ as they weighed up a cut in corporation tax against a downgrade of growth forecast. The Budget hit the share price of leading banks hard following an increase in bank levy, with Barclays suffering a loss on over 3% on its share price. However, the MPC may have won the day as the new Budget appears to let the Bank of England off over the decision to maintain the 0.5% interest rate.
Looking to the US, Wall Street opened down on the day as eurozone worries combined with disappointing housing data to weigh on sentiment. With sentiment still affected by the ongoing geopolitical situation, and events at home failing to ignite the markets, it looks like the mood will remain somewhat dampened in the short-term.
