UK shares ticked higher as investors waited anxiously to see how the Chancellor’s Budget will impact businesses and households.
The FTSE 100 rose 0.3pc in early trading, while the more domestically focused FTSE 250 gained 0.2pc, as cautious optimism filtered through the market.
Banking stocks led the advance, climbing 0.5pc after reports suggested lenders would avoid fresh tax rises.
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Lloyds Banking Group added 1.8pc
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NatWest Group rose 1.7pc
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Barclays gained 1.5pc
Retailers also found support, up around 1pc, despite warnings from the CBI of a sharp dip in business confidence ahead of the Budget. The sector was lifted by a strong performance from Kingfisher, which surged 5pc after upgrading its annual profit forecast, making it one of the top FTSE 100 performers.
Online electrical retailer AO World jumped 5.9pc after raising its profit outlook for the second time in three months, signalling improving momentum in consumer demand.
Investors are also keeping a close eye on the US, where upcoming producer inflation and retail sales data will be among the first major releases since the end of the country’s prolonged government shutdown.
Not all stocks shared in the upbeat mood. Speciality insurer Beazley slumped 9.4pc after cutting its forecast for annual insurance written premiums, unsettling investors.
With the Budget looming and key US data on the horizon, markets remain highly sensitive to policy signals and economic clues.
