FTSE begins the week on a strong note
The United Kingdom’s (UK’s) FTSE 100 started the week on a strong footing, bolstered by the upcoming US presidential election and the possibility of an interest rate cut by the Bank of England (BoE) later this week.
Despite this initial optimism, the FTSE still faces the task of recovering from last week’s UK budget, which unsettled UK currency, bond, and stock markets.
Government borrowing takes centre stage
Contrary to expectations for fiscal restraint, the UK government announced an additional £30 billion in borrowing over five years. This approach involves aggressive front-loading, with borrowing expected to increase by £40 billion in 2024 – 2025.
The budget has attracted media criticism, particularly around concerns that higher taxes may undermine business confidence, despite the plan’s potential to support economic growth.
Additionally, increased government spending could lead the BoE…
