FTSE 100 Index Gains Continue Ahead of UK Budget Announcement; Pets at Home Rises

The FTSE 100 has risen 0.2% early on Wednesday, extending gains from Tuesday’s positive close as investors turn their attention to the UK Budget. 

Chancellor Rachel Reeves is due to deliver her statement at 12:30 GMT, with expectations of increases across a range of taxes. 

Ahead of the 2024 election, Labour pledged not to raise income tax, National Insurance or VAT for “working people,” leaving uncertainty over where any tax rises may fall.

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European markets are also firmer, with the DAX up 0.3% and the CAC 40 gaining 0.3%.

Mining stocks have led the FTSE 100 higher, with Endeavour Mining up 3.7% and Fresnillo rising 3.6%. Burberry has also advanced, adding 2.5%. 

On the downside, Sage slipped 1.7%, while Next and Diageo fell 1.3% and 1.1%, respectively.

In corporate updates, Mobico, the owner of National Express, said a “large-scale” cost reduction programme is underway after the company posted a decline in Q3 UK revenues. 

The announcement highlighted ongoing pressures in the transport sector amid subdued demand and rising costs.

Pets at Home shares rose over 5% despite reporting a 33.5% fall in half-year underlying profit to £36.2 million, driven by weaker trading in its retail division. 

The division’s revenues dropped 2.3% to £679.9 million and underlying profits slumped 84.1% to £3.5 million.