With less than a week remaining until the Budget, consumer confidence has hit its lowest point of the year. According to PwC, those over 65 are now the most pessimistic demographic in the country, following Rachel Reeves’ decision to eliminate winter fuel payments for households not receiving pension credit.
The Chancellor is anticipated to unveil a series of tax increases in the October 30 Budget as part of a £40 billion plan to strengthen the public finances.
Asian shares declined following a third consecutive day of losses on Wall Street, as its prolonged rally showed further signs of slowing.
Japan’s benchmark Nikkei 225 erased earlier gains, trading flat at 38,104.86 after purchasing manager indexes indicated deteriorating conditions in both manufacturing and services. The overall composite PMI from au Jibun Bank fell to its lowest level in two years.
Chinese markets also dropped, with Hong Kong’s Hang Seng down 1% to 20,555.04 and the Shanghai Composite slipping 0.5% to 3,286.17. In Seoul, the Kospi declined 0.2% to 2,593.57, while Australia’s S&P/ASX 200 inched up 0.1% to 8,225.90.
Elsewhere, Taiwan’s Taiex fell 0.5%, and India’s Sensex edged 0.2% lower.
On Wall Street, all three major indexes closed in negative territory. The Dow Jones Industrial Average dropped 1% to 42,514.95, the S&P 500 fell 0.9% to 5,797.42, and the Nasdaq Composite slid 1.6% to 18,276.65.
In the bond market, the yield on 10-year U.S. Treasury notes rose to 4.243%, up from 4.231% late Tuesday.
