UK markets opened slightly up this morning, with sterling higher and gilts showing modest yield movement ahead of the Chancellor’s announcements.
FTSE 100 peaked at 9,648, with the FTSE 250 also peaking at 21,974 before midday.
The currency, pound sterling, traded modestly with the GBP/USD trading near 1.3171 with markets favoring stability over aggressive moves. Fixed-income investors are holding off on large positions ahead of any signals about fiscal spending, borrowing, potential tax changes or government debt issuance plans.
Market volatility was muted across asset classes during the first hour of trading. Both gilts and sterling were sensitive to pre-Budget expectations, but with no major surprises or leaks, early trading reflected a cautious and defensive market mood.
Investors are expected to maintain this defensive stance until the Budget is formally read. Attention will focus on medium-term borrowing projections, fiscal rules adherence, and any guidance on spending priorities or tax measures.
