European Stocks Drop on Earnings; UK Mid-Caps Gain After Budget
European stocks declined by the most in over a month on a disappointing set of corporate earnings reports. The UK’s mid-cap index outperformed as Chancellor of the Exchequer Rachel Reeves delivered her first budget.
The Stoxx Europe 600 Index fell 1.3% by the close — the biggest one-day drop since Sept. 20. All major subsectors were in the red. French stocks slid 1.1% despite figures showing the country’s economy performed stronger in the third quarter than expected.
The UK’s FTSE 250 rose 0.3%,. Reeves said she was raising taxes by £40 billion ($52 billion) to boost spending on public services and to cover a fiscal hole she said was left by the previous Conservative government. This entails hikes to capital gains tax and employers’ national insurance contributions.
The FTSE AIM 100 Index, which includes the biggest stocks in Britain’s junior market, rallied by the most since April 2020.
Source : Bloomberg
