The FTSE 100 started the day higher before sellers took the index lower through the session in the run-up to the Autumn Statement.
As we well know, past budgets have caused sharp swings in UK markets, but the raft of measures outlined by Jeremy Hunt barely moved UK equities, and bond yields remained steady.
The FTSE 100 was trading down 10 points to 7,471 at the time of writing.
The Chancellor was keen to cut taxes ahead of elections next year and delivered a cut to national insurance, and made full expensing of investment in business equipment permanent. The move allows companies to offset investment in IT and machinery against corporation tax.
The government would have been conscious of fallout in financial markets if they were too loose with tax cuts amid a downgrade to the UK’s growth forecasts.
Measures to help planning applications did little to help housebuilding shares, and news the government was considering a Natwest share sale to boost the population’s involvement in the UK equity market neither helped Natwest shares nor trading platforms such as Hargreaves Lansdown.
Taylor Wimpey was down 0.9% and Hargreaves slipped 0.8%. Natwest gave up 1.2%.
Kingfisher and Sage
The major movers on Wednesday were Kingfisher and Sage Group, who released very different trading updates and were met with very different reactions from shareholders.
Kingfisher was the top faller after saying poor weather caused a slowdown in their European business as total group revenue fell. The DIY company is suffering from lower spending after the pandemic and is facing macroeconomic headwinds. Their UK business showed strength with a minor sales increase as they increased market share.
Nonetheless, disappointment around the European business dragged shares 6% lower on Wednesday.
Sage shares surged as the software and solution company enjoyed growth across all areas, with exceptional growth in their cloud business. Sage Business Cloud revenue grew 25% to £1,628m as total group revenue increased to £2,184m.
Sage shares were 13% higher at the time of writing.