FTSE 100 temporarily dipped slightly after the premature release of budget details, but bounced up and ended higher than the previous day.
The index rose 0.85 percent, closing at 9,691, a sign that markets were not overly rattled by the budget announcement.
Michael Brown, analyst at Pepperstone, believes the leaked document gave investors information and more time than usual to digest the budget and the Office of Budget Responsibility’s (OBR) economic outlook.
“I think that’s one of the reasons why there wasn’t as much volatility as you might have expected,” said Brown. “The other reason is that there really wasn’t anything surprising in there.”
Most of the measures delivered in the speech had already been hinted at or made public in the months and weeks before, avoiding major surprises across the stock market.
Winners and losers
Much of the positive outcome was driven by heavyweights in the banking sector. Lloyds and Barclays both surged, ending the day 3.44 percent and 3.16 percent higher than yesterday.
“Weaker than expected economic growth in 2026 initially weighed on financial markets, initially bringing down shares in house builders, banks and retailers,” said Dan Coatsworth, head of markets at AJ Bell. “However, banking shares were quick to bounce back after it became clear the sector would not be hit by a new levy on profits.”
Financial advisor St. James’s Place was the day’s winner, jumping 5.30 percent, while silver and gold mining Fresnillo gained 5.17 per cent and gold producer Endeavour Mining rose by 4.75 percent.
The biggest price drop was home builder Berkeley Group, ending the day 2.97 percent lower.
Among the listed house builders, Berkeley is the most focused on the Southeast of England and typically sells the highest priced homes. Coatsworth said: “Investors might be taking the view it is most exposed to the mansion tax announced at the Budget, which would make higher end homes less attractive.”
Entain, a large sports betting and gaming group spiked by 3.40 percent despite facing the prospect of higher gambling taxes. According to Coatsworth, there has been chatter that severe tax hikes might increase the likelihood that Entain could become a takeover target or be broken up.
The FTSE 250 also ended on a positive note, 1.24 percent higher, reflecting a mildly optimistic view about UK companies.
