UK stocks climb ahead of budget led by financials, consumer staples stocks
Nov 25 (Reuters) - UK stocks climbed on Tuesday, boosted by gains in financials and consumer staples stocks ahead of Wednesday’s budget that is expected to include significant tax measures.
The blue-chip FTSE 100 .FTSE closed up 0.8%. The FTSE 250 index of domestically oriented UK firms .FTMC rose about 1%, logging its best day in over a month.
Personal goods .FTNMX402040 stocks led the sectoral gains, rising 3.9% with Burberry BRBY.L up 4.7%.
Construction and materials .FTNMX501010 advanced 2.5%, with Ibstock IBST.L up 5.9%. Retailers .FTNMX404010 added 2.4% helped by a 5.9% gain in Kingfisher KGF.L after the home improvement retailer raised its annual profit forecast.
A survey showed British retailers reported the sharpest drop in confidence in 17 years and their sales fell again ahead of Wednesday's budget.
The government appears unlikely to raise income tax but is expected to target increases in several other levies in Wednesday's budget.
Banks .FTNMX301010 gained 1.5% after a Goldman Sachs note referred to a Financial Times report that the sector would be spared from taxes. Lloyds Banking LLOY.L rose 3.8%, Barclays BARC.L added 2.4% and NatWest Group NWG.L climbed 3.7%.
Industrial metal miners .FTNMX551020 gained 1.2%, tracking higher copper prices. Anglo American AAL.L added 1.6%.
The travel and leisure sector .FTNMX405010 recovered from early losses, and gained 0.9%. Wizz Air WIZZ.L rose 3.6%. EasyJet EZJ.L fell 1.5% on winter sales concerns.
On the flip side, non-life insurers .FTNMX303020 fell 2.7% after speciality insurer Beazley BEZG.L plunged 9.2% after the company cut its annual insurance written premiums forecast.
Among other moves, Compass Group CPG.L shares fell 2.7% after the food catering firm reported that revenue growth will be moderate in 2026 due to lower inflation.
Domino's Pizza Group DOM.L lost 1.4% after CEO Andrew Rennie stepped down, marking another senior departure as the company shifts strategy to tackle weak sales and rising costs.
Meanwhile, British government bonds rallied on Tuesday, a day before the budget.
Data in the U.S. showed retail sales fell short of expectations in September, while a separate report showed producer prices rebounded in September.
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