Chancellor’s ‘mini-budget’ fails to excite

The FTSE 100 drifted lower as the chancellor’s summer statement failed to excite traders.

Positive sentiment in the US also failed to drag the European indices higher as it weighed down by early caution in the Asian markets.

London’s top flight closed 33.74 points lower at 6,156.16p at the end of trading yesterday.

Connor Campbell, financial analyst at Spreadex, said: “Rishi Sunak’s summer statement didn’t end up doing much for the FTSE, nor did a positive open for the Dow Jones.”

The major European markets slipped as they remained cautious, after a similarly negative session on Tuesday.

The German Dax decreased by 0.97%, while the French Cac moved 1.24% lower. Across the Atlantic, the Dow Jones climbed after the bell despite coronavirus concerns remaining high across the country.

Sterling flitted around during the statement but ended broadly flat as there was little to show a major shift in fiscal policy.

The value of the pound rose 0.37% versus the US dollar at 1.259 and was down 0.15% against the euro at 1.111.

The price of oil nudged higher as the energy market remained broadly muted. The price of a barrel of Brent crude oil increased by 0.37% to 43.02 US dollars.

The biggest risers on the FTSE 100 were Rolls-royce, up 10.3p at 287.8p, Fresnillo, up 23.4p at 908.6p, ABF, up 45.5p at 1,996.5p, and BHP, up 32.8p at 1,682.2p. The biggest fallers of the day were WPP, down 33.4p at 591.4p, Melrose, down 4.85p at 114.1p, IAG, down 8.5p at 212.1p, and Ashtead, down 97p at 2,664p.