Britain’s FTSE 100 rose 0.34% to 7,262.06 and the FTSE 250 0.36% to 18,878.3, on a trading day overshadowed by news of Queen Elizabeth II’s death. The monarch died at her home in Balmoral, Scotland, with family by her side. The news overshadowed Prime Minister Liz Truss’ first major policy announcement, an ‘Energy Price Guarantee’ that will see typical UK households pay £2,500 a year in energy bills for two years, a move that could cost £150 billion.
The pound, which had fallen to levels not seen since 1985, recovered slightly against the dollar.
George Buckley, economist at Nomura London, said: “I suspect the size of the package is likely to weigh on the minds of the Bank of England’s Monetary Policy Committee (MPC) members and so we have raised our forecast for what the bank over the next few months or at least one of the reasons why we have 50 basis points in the bank next week.”
“They really need to do a lot more over the next few months before thinking about easing the policy sometime in the second half of next year.”
Oil and gas stocks rose on the news with Energean (NL: ENOG) shares rose 12% after news it had raised its annual sales and profit targets, with profits rising 165% to £173 million.
One of the biggest fallers of the day was cybersecurity firm Darktrace (NL: DARK), whose shares fell nearly 35% on news that a possible takeover by U.S. private equity firm Thoma Bravo had fallen through.
UK business news today
Truss’ energy plan puts Bank of England on the ground (FT)
Ed Milliband’s windfall tax plan would be a disaster to rival the price cap (Telegraph)
ECB raises interest rate by record 75 basis points to curb inflation (Time)