The FTSE 100 opened 32.06 points higher at 10,726.56 after markets absorbed the UK Budget and the US Federal Reserve's decision to leave interest rates unchanged. Brent crude futures fell 0.42% to USD 114.8 per barrel. US West Texas Intermediate (WTI) declined 0.79% to USD 102 per barrel.
On the upside, Shell gained 1.88% to 4,031.00p, while Hiscox advanced 1.57% to 1,873.00p. Standard Chartered climbed 1.21% to 2,093.00p, and Aviva increased 1.11% to 727.60p. Compass Group rose 1.10% to 33.85, while Melrose Industries added 1.04% to 467.90p.
On the downside, Lloyds Banking Group plunged 5.37% to 98.32p, while St. James's Place declined 3.77% to 1,071.50p. Polar Capital Technology Trust slipped 1.88% to 627.00p, and NatWest Group fell 1.67% to 636.00p. GSK decreased 1.50% to 1,804.00p, while Diageo lost 1.24% to 1,716.00p.
Advertising giant WPP is showing signs of recovery after falling sales for a year, job cuts and restructuring. Revenue edged up 0.5% to GBP 3.27 billion in its third quarter, although sales excluding costs passed on to clients fell 2.1% to GBP 2.41 billion. Its media division returned to growth, but its creative business remained under pressure, with sales falling 5.1%.
UK Chancellor John Healey has promised there will be a ‘reduction’ in the welfare bill before the next election. Healey told broadcasters that the government was ‘ready to take some pretty tough decisions’ to rein in spending, although he echoed his predecessors in claiming the ‘best economic policy’ was to find an end to wars in the Middle East and Ukraine.
The Chancellor said he would look to cut spending on benefits by giving people a chance to work, adding it was ‘not progressive’ to see total welfare spending rise from GBP 334 billion last year to GBP 413 billion in 2030.
Haleon cut its revenue target after facing mild demand for cough, cold and flu medicines. The firm had been expecting revenue growth of between 3%-5% but has now cut this target to 2.5%. Despite this, the group launched a GBP 500 million share buyback.
Lower demand for flu medicines slowed Haleon’s sales growth in North America from 3.1 to 2.5%. “We are clear on where we need to improve and we are taking action to deliver stronger performance despite challenging markets,” said Chief Executive Brian McNamara.
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In the US, the S&P 500 gained 0.28% to end at 7,743.98, while the NASDAQ Composite added 0.27% to close at 26,549.85. The Dow Jones Industrial Average climbed 97.53 points, or 0.19%, to 52,475.10.
In Asia, Tokyo's Nikkei 225 rose 1.1% to 64,659.47, while China’s Shanghai Composite edged down by 0.82%. Hong Kong’s Hang Seng declined 0.67%, and South Korea’s Kospi dipped 1.24%. In India, both the Nifty 50 and the Sensex advanced by 0.7% and 0.88%, respectively.