UK stocks gain on consumer staples, defence as Healey reportedly plans to avoid more borrowing
EWU•The FTSE 100 rose 0.47% to 10,700.08 points and the FTSE 250 climbed 0.8%. Finance Minister John Healey reportedly is expected to fund new initiatives through higher taxes or spending cuts rather than more borrowing.
1. UK indexes rise
The FTSE 100 rose 0.47% to 10,700.08 points by 10:06 a.m. GMT on Wednesday, while the FTSE 250 gained 0.8%. Consumer staples and defence shares advanced as investors weighed Healey’s expected budget plans to use higher taxes or spending cuts rather than additional borrowing.
2. Shares and rate outlook
Unilever and British American Tobacco gained 1% each, Diageo rose 1.6% and Burberry added 2.9%. Chemring climbed 3.8% after its Roke unit secured a partnership with a major US contractor, including an initial $16 million order and a minimum $170 million agreement over five years. Bank of England Chief Economist Huw Pill said he was sceptical of market expectations for four rate hikes over the next year.
