FTSE slips as investors await Wednesday's Budget
London's FTSE index traded lower as investors held back ahead of the Chancellor's Budget statement, with US and Canadian interest rate decisions also weighing on sentiment.
London's FTSE index had a weak session as investors held back ahead of Wednesday's Budget, with the Chancellor's statement and interest rate decisions in the United States and Canada weighing on sentiment across the market.
Traders were reluctant to take large positions before the Budget, which is widely watched for its implications for taxation, public spending and the outlook for the UK economy. Uncertainty over the Chancellor's plans tends to make investors cautious, particularly in the days leading up to a fiscal announcement that can shift expectations for borrowing, growth and interest rates.
The decisions on rates from the US Federal Reserve and the Bank of Canada added to the cautious mood. Central bank policy on borrowing costs influences global equity markets, and any signal that rates may stay higher for longer typically pressures share prices, as it raises the cost of capital for companies and reduces the appeal of riskier assets.
The session reflected a broader pattern in which global events and domestic policy uncertainty combine to subdue trading. With the Budget due on Wednesday, many investors appeared to be waiting for clarity before committing capital, leaving the index under pressure for much of the day.
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