IMF and Moody's criticism of the minibudget pushes UK stocks lower

The FTSE 100 fell again yesterday, by 0.5%, and was down 1.5% this morning, with investors still reeling from the announcement of the expensive minibudget. Yields on the UK 10-year gilts gained 30bps.

Sentiment further deteriorated after the International Monetary Fund (IMF) and ratings agency Moody's criticized the tax cuts unveiled by the British government.

Energy stocks were also impacted by higher gas prices, following a potential act of sabotage on the Nord Stream gas pipeline system under the Baltic sea.

Among stocks, fashion retailer Boohoo fell 4.7% after it slashed its full-year outlook. Meanwhile, Burberry Group gained 2.6% after naming Daniel Lee as its new chief creative officer, replacing Riccardo Tisci.

 

Things to read today:

IMF urges UK to ‘re-evaluate’ tax cuts in biting attack on fiscal plan (Financial Times)

The U.K. Economy Is Having a Meltdown. Why It’s Going to Get Worse (Barron's)

European leaders blame sabotage as gas pours into Baltic from Nord Stream pipelines (The Guardian)