What financial markets thought of Rishi Sunak's first Budget
The Chancellor had plenty of cash to throw around, but how did equity markets respond?
11th March 2020 14:17
by Richard Hunter from interactive investor
The Chancellor had plenty of cash to throw around, but how did equity markets respond?
Well-intentioned though it may have been – although light on detail about where the additional monies will be found – the Budget will have comforted many in light of the economic impact of coronavirus and, taken in conjunction with the previously announced rate cut from the Bank of England, the overall package was well-coordinated and delivered.
For markets, though, eyes were on the other side of the pond given the global economic and market turmoil.
Americans put their clocks forward last weekend, three weeks ahead of the UK, and so, at roughly the time that the Chancellor was about to sit down, namely 13.30, the US markets opened and were immediately marked down by around 2.5%.
This unfortunately took the wind out of the sails for the FTSE 100 index in particular, which had managed to eke out a small gain during the Chancellor’s speech until markets opened Stateside. There, another lurch down in the oil price and the as yet unsolved coronavirus impact continue to dominate sentiment.
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