UK equities steadied on Monday after last week’s dramatic sell-off triggered by the Chancellor’s U-turn on raising income tax. The FTSE 100 was largely unchanged in early trading at 9,698.32, while the more domestically focused FTSE 250 slipped 0.2% to 21,779.74.
The muted open follows a bruising session on Friday, when the FTSE 100 sank 1.1% — its worst day in seven months — after it emerged that Rachel Reeves is unlikely to pursue an income tax increase, raising fresh concerns over the Government’s fiscal plans.
Across Europe, markets were mixed as investors prepared for a wave of long-delayed US economic data, set to be released this week after the resolution of the federal shutdown. The Stoxx 600 was flat, France’s CAC 40 dipped 0.1%, and Germany’s DAX edged 0.1% higher.
Attention is now turning to Nvidia, the world’s most valuable listed company, which will report third-quarter earnings on Wednesday. The results are expected to heavily influence sentiment around whether markets are entering an AI-driven valuation bubble, with tech stocks already under scrutiny after recent volatility.
