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UK Stocks Edge Higher as Investors Brace for Budget and Key US Data
UK markets posted modest gains as investors awaited the upcoming Budget featuring major tax measures. Banking, mining, retail, and travel stocks moved sharply in mixed sectoral action amid rising commodity prices and expectations around new fiscal decisions.
UK stocks gained on Tuesday in a choppy trading session as investors looked ahead to this week’s Budget, which is expected to feature substantial tax measures, while also keeping an eye on crucial US economic data.
By 10:50 GMT, the blue-chip FTSE 100 was up 0.2%, while the more domestically focused FTSE 250 rose 0.1%.
Among sectors, non-life insurers fell 3.3% after specialty insurer Beazley dropped 9.4% following a downgrade to its annual written-premium forecast.
The travel and leisure index slipped 1%, with cruise operator Carnival sliding 5.5%.
Banking stocks rose 0.3% after a Goldman Sachs note referenced a Financial Times report suggesting the sector may be exempted from new taxes. Lloyds gained 1.8%, Barclays 1.1%, and NatWest Group 1.4%.
Industrial metal miners led the gains with a 1.1% rise, supported by stronger copper and iron ore prices. Antofagasta climbed 2.7%, while Anglo American advanced 2.2%.
In personal goods, Burberry rose 1.6%, helping the sector add 1.1%.
Retailers gained 1%, with Kingfisher jumping 4.7% after the home-improvement chain raised its full-year profit outlook.
Elsewhere, shares of catering giant Compass Group fell 2.7% after the company issued forecasts for 2026 profit and organic revenue growth that were broadly in line with expectations.
Domino’s Pizza Group slid 3.6% after CEO Andrew Rennie resigned—another senior departure as the company shifts strategy amid soft sales and rising costs.
AO World rose 5.9% after the online electricals retailer upgraded its annual profit forecast for the second time in three months.
Investors are now focused on Finance Minister Rachel Reeves’ Budget announcement on Wednesday, following mixed signals on potential tax hikes. While income tax increases now seem unlikely, the government is expected to target several other levies.
Markets are also awaiting the release of producer inflation data and US retail sales—among the first major data releases since the country’s longest-ever government shutdown.
