“Overall, this budget is steady as she goes from a labour government: more spending and higher taxes, with a new type of ISA, the starter ISA, thrown on top,” Brooks noted.
11:05am: Fed expected to hold
The Fed is widely expected to hold interest rates steady at 3.75% to 4% today, following a quarter-point cut in September.
With a pause expected, there’s less pressure for the Fed to act now, says Swissquote’s Ipek Ozkardeskaya, and raising rates just days before crucial midterm elections would be “politically sensitive.”
“For the Fed, the challenge will be to act based on facts and justify the direction it takes,” Ozkardeskaya said.
“Again, even though inflation is not solely demand-driven, if higher energy costs feed through to the broader economy, rate hikes could temper part of the pressure.”
10:00 am ET: AI shares rally on Wall Street
The S&P 500 and Nasdaq Composite opened higher on Wednesday as memory-chip stocks rallied after strong results from SK Hynix, while investors awaited major technology earnings and the Federal Reserve’s interest rate decision.
The Dow Jones Industrial Average fell 42.10p, or 0.08%, to 52,335.43 at the open, but quickly recovered thereafter.
The S&P 500 rose 13p, or 0.17%, to 7,735.56, while the Nasdaq Composite gained 63.8p, or 0.24%, to 26,541.607.
In the first few minutes of Wall Street opening, Vertiv shares surged 13.56% to $236.85, making the data centre infrastructure company the standout among three stocks in focus as investors assess demand for AI.
The rally follows a 61% rise in quarterly revenue and an improved full-year sales outlook, reinforcing expectations that investment in AI infrastructure will continue to support demand for power and cooling equipment.
Alphabet rose 1.04% to $323.91 ahead of quarterly results due after the US market closes, with investors looking for faster growth in its Google Cloud business and evidence that AI spending is generating returns.
Microsoft was nearly flat, up 0.08% at $531.73, as investors awaited its results for clues on Azure growth, AI-related capital expenditure and cloud profitability.
The contrasting moves put the focus on whether technology earnings can justify heavy AI investment and sustain the sector’s rally.
At 13:41 pm GMT, European stocks are trading higher across the board, with the FTSE 100 rising 0.25% to 10,713.38 as investors assess Chancellor John Healey’s first UK budget and its implications for growth, public finances and household costs.
FTSE 100: up 26.84p, or 0.25%, at 10,713.38, recovering from earlier losses as investors digest the budget announcements.
Stoxx 600: up 0.15% at 644.64, pointing to modest gains across the wider European market.
Dax: up 0.44% at 25,702.37, leading the major European indices.
CAC 40: up 0.23% at 7,905.64, adding to the broadly positive regional picture.
9:12 am EDT: FTSE 100 recovers following budget speech
US stock futures are signalling a mixed but mildly positive opening on Wednesday, with technology shares leading gains while the Dow edges lower ahead of major earnings reports and the Federal Reserve’s interest rate decision.
Nasdaq 100 E-mini futures: up 0.30% at 29,900, the strongest performer, pointing to continued support for technology and AI-related stocks ahead of results from Microsoft and Alphabet.
S&P 500 E-mini futures: up 0.18% at 7,772, indicating modest optimism across the broader market.
Russell 2000 futures: up 0.03% at 2,829.40, suggesting little movement among smaller companies.
Dow E-mini futures: down 0.02% at 52,567, signalling mild weakness among blue-chip stocks.
Investors are focused on the Federal Reserve’s latest interest rate decision, due at 2pm ET on Wednesday, followed by a press conference with chair Kevin Warsh.
Markets largely expect policymakers to hold rates steady after last month’s increase, while persistent inflation driven by high energy costs has fuelled expectations of another rise in December.
Attention will also be on quarterly results from Microsoft and Alphabet, due after the US market closes on Wednesday, with both technology giants expected to report faster growth in their cloud computing businesses.
US Treasury yields edged higher, with the 10-year yield climbing to 5.02% from 5.00% on Tuesday and the 30-year yield rising to 5.32% from 5.31%.
Brent crude rose to US$115.35 a barrel by midday, up from US$114.13 late on Tuesday, as diplomatic efforts to reduce tensions in the Middle East continued amid renewed Houthi attacks.
At 13:15 pm GMT, the FTSE 100 has pared some of its earlier losses, while the FTSE 250 has edged 0.13% higher, even as Chancellor John Healey presented his first budget.
The Chancellor, citing projections from the Office for Budget Responsibility (OBR) said Britain’s economy is forecast to grow by 1% next year, Healey said on Wednesday.
The OBR expects economic growth to accelerate to 1.6% in 2028, 1.8% in 2029, 1.7% in 2030 and 1.6% in 2031, Healey told parliament.
The government’s fiscal headroom is expected to narrow by the end of the decade, with tax revenues forecast to exceed day-to-day spending by £15 billion in the 2029-30 financial year.
Healey also extended the 5p fuel duty cut until next July, saying the war in the Middle East was keeping fuel prices high and that the tax relief would help motorists through the winter and spring.
At 13:15 GMT, the FTSE 100 has recovered earlier losses to rise 0.09% to 10,696.52, adding 9.98p as the UK market assesses Chancellor John Healey’s budget announcements.
FTSE 250: up 32.52p, or 0.13%, at 24,748.89, outperforming the blue-chip index and suggesting slightly firmer sentiment among mid-cap shares.
FTSE 350: down 4.02 p, or 0.07%, at 5,829.93, reflecting the marginally negative direction across the wider large- and mid-cap market.
Banking shares are among the strongest FTSE 100 performers in the snapshot. Standard Chartered has risen 3.86%, Barclays 2.54%, NatWest 2.36% and Lloyds Banking Group 1.86%.
Best of the brokers
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Hunting (Hunting PLC (LSE:HTG)): Shares −11% to 377.5p after 2026 EBITDA guidance cut; Jefferies negative on weaker Middle East deliveries and slowing North America activity
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Panmure Liberum: Plus500 (Plus500 Ltd (LSE:PLUS)) ‘buy’ maintained, 5,400p target (~61% upside vs 3,352p); first independent futures broker to offer Kalshi perpetual contracts
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88 Energy (88 Energy Ltd (AIM:88E, ASX:88E, OTCQB:EEENF)): Shares +18% to 1.22p after farm‑out securing up to A$15.5m for Augusta‑1 and South Prudhoe; Cavendish ‘buy’ maintained, 19.8p target, citing validation from Westlawn participation
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GSK (GSK PLC (LSE:GSK, NYSE:GSK), GSK PLC (LSE:GSK, NYSE:GSK)): Shares −4% to 1,852p despite Q3 beat; vaccine sales fell, cautious EPS outlook (7–9% growth, lower half of range); Jefferies ‘buy’ maintained, 2,500p target, consensus ~50bps below midpoint
12:30 pm GMT: Footsie down
Global markets climbed on Wednesday as renewed optimism about artificial intelligence (AI) lifted investor sentiment ahead of results from major technology companies, while rising oil prices added to inflation concerns.
European shares were held back by weakness in financial stocks as investors assessed a busy day of corporate earnings, with attention turning to a packed 48 hours of potential market catalysts.
At 12:26 pm GMT:
The FTSE 100 has fallen 0.18% to 10,667.40, a decline of 19p.
The Stoxx 600 is down 0.16% at 642.64, indicating mild selling pressure across the wider European market.
Germany’s Dax has risen 0.15% to 25,628.17, gaining 37p and outperforming its regional peers.
France’s CAC 40 is down 0.01% at 7,886.35, leaving it virtually unchanged.
The Federal Reserve, European Central Bank and Bank of Japan are among the major central banks due to announce interest rate decisions, while results from Microsoft and Alphabet will test whether enthusiasm for AI can sustain the technology-led rally.
US stock futures are pointing to a broadly higher open on Wednesday, led by technology shares, as investors look ahead to earnings from major AI companies, although the Dow is edging lower.
11.00 am GMT: Smaller companies outperform
London’s smaller companies outperformed, with the FTSE AIM 100 rising 21 points, or 0.6%, to 3,521 and the FTSE SmallCap gaining 18 points, or 0.2%, to 8,218.
88 Energy Ltd (AIM:88E, ASX:88E, OTCQB:EEENF, FRA:POQ) announced a farm-out agreement worth up to US$10.9 million, or A$15.5 million, for its South Prudhoe oil project in Alaska.
Westlawn Americas Offshore will acquire a 40% working interest and help fund the Augusta-1 exploration well, while 88 Energy retains 60% and remains operator ahead of drilling scheduled for early 2027.
Ondine Biomedical Inc (AIM:OBI, OTC:OBIMF) shares gained 5% after Phase 3 LANTERN trial data showed treatment-related adverse events in eight of 2,543 patients, equivalent to 0.31%.
All reported events were mild and there were no treatment-related serious adverse events.
10.00 am GMT: Standard Chartered leads blue-chip risers
The FTSE 100 extended its decline, falling 35 points, or 0.3%, to 10,651 as investors remained cautious before the UK Budget.
Standard Chartered was the strongest blue-chip performer, rising 3.3% to 2,086p after third-quarter pretax profit increased 27% to $2.25 billion, ahead of the $1.99 billion expected by analysts.
Operating income rose 13% to $5.78 billion, supported by strong performances from its wealth and global markets divisions, while credit impairments declined.
The bank now expects annual income growth to exceed its previous 5% to 7% range and forecasts a return on tangible equity of around 14%.
Babcock rose 1.7%, and Polar Capital Technology Trust added 1.6%, although weakness elsewhere kept the wider market in negative territory before the Budget announcement.
9.00 am GMT: GSK weighs on blue chips
The FTSE 100 fell 24 points, or 0.2%, to 10,662 after trading between 10,643 and 10,692 as healthcare and industrial weakness outweighed gains among financial shares.
The FTSE 250 was broadly flat at 24,710, while the AIM All-Share rose two points, or 0.3%, to 761.
GSK was the biggest blue-chip faller, down 4.1%, after total operating profit fell 16%, vaccine sales declined 2% and expected annual core earnings growth was placed in the lower half of its guidance range.
Unilever fell 1.8% as investors focused on slowing volume growth despite stronger headline sales.
Standard Chartered led the risers with a 3.2% gain after its profit beat, while Raspberry Pi topped the FTSE 250 after rising 4.6%.
8.15 am GMT: London opens lower before Budget
The FTSE 100 fell 31 points, or 0.3%, to 10,655 after opening below Tuesday’s 10,687 close as investors remained cautious before the UK Budget.
Standard Chartered led the index with a 4.7% rise to £21.13 after quarterly pretax profit increased 27% to US$2.25 billion and management raised its full-year income guidance.
The lender’s advance contrasted with wider blue-chip weakness as investors assessed the possibility of higher taxes on banks.
Technology exposure also strengthened, with Polar Capital Technology Trust up 1.9% following Wall Street’s artificial intelligence rally.
Gold miners gained as Endeavour Mining rose 1.3% and Fresnillo added 1%, while the Budget is expected at 12.30 pm.
7.00 am GMT: London braces for Budget day
London stocks face a subdued start, with IG pricing the FTSE 100 near 10,710 after the blue-chip index fell 81 points, or 0.8%, to 10,687 on Tuesday.
Investors are awaiting Chancellor John Healey’s Budget at about 12.30 pm before the Federal Reserve announces its interest-rate decision at 6pm.
Wall Street advanced as renewed demand for artificial intelligence shares lifted the Nasdaq 1.2% to 26,478 and the S&P 500 0.6% to 7,723, while the Dow finished broadly unchanged.
The gains were concentrated among large technology companies, with more shares falling than rising across the S&P 500 despite the index’s positive close.
Asian markets were mostly higher, with South Korea’s Kospi surging about 6% after strong SK Hynix earnings, while Japan’s Nikkei gained about 1.3% and Hong Kong edged higher.
Australia’s ASX 200 surrendered a gain of about 1% to close down three points at 8,847 after annual inflation accelerated to 4.3% in September, increasing expectations of another interest-rate rise.
Brent crude remained above $110 a barrel, gold traded near US$4,050 an ounce, copper strengthened and Bitcoin held around $80,700.
Sterling weakened towards $1.33 before the Budget, while GSK, Unilever and Aston Martin are among the companies scheduled to update investors.
