European stocks dip as UK markets react to Spring Statement
European stocks were generally lower on Wednesday, with a focus on U.K. markets.
The pan-European Stoxx 600 was 0.33% lower at 12:48 p.m. in London, paring earlier losses, News.Az reports, citing CNBC.
It is a busy day for U.K. financial markets, with the “Spring Statement” from U.K. Finance Minister Rachel Reeves beginning in the early afternoon local time. Reeves is expected to announce billions of pounds worth of spending cuts as a way to close a budget shortfall caused by a rise in borrowing costs since her first fiscal plan released last fall.
The U.K.’s FTSE 100 was 0.3% higher, bucking the regional trend which saw Germany’s DAX and France’s CAC 40 down by 0.44% and 0.5%, respectively.
Markets are also reacting to U.K. inflation figures published earlier in the day which showed price rises unexpectedly cooled to 2.8% in February, fueling hopes for a more decisive path of rate cuts from the Bank of England this year.
Sterling was 0.36% lower against the U.S. dollar at $1.289 at 12:53 p.m. in London.
U.K. bond yields were slightly lower but pulled back from earlier declines as Reeves began delivering her Spring Statement. Investors are awaiting an announcement from the U.K. Debt Management Office on the size of its gilt issuance package for the 2025-2026 fiscal year, expected to be the largest since the start of the pandemic.
Asia-Pacific markets traded higher overnight, tracking Wall Street gains on Tuesday on expectations that U.S. President Donald Trump’s tariffs could be softer than expected earlier. U.S. stock futures were little changed Tuesday night.
U.S. markets closed slightly higher Tuesday despite the release of consumer confidence data showing that U.S. consumers’ near-term outlook on income, business and job prospects dropped to the lowest reading in 12 years.
Banco BPM shares dipped 5.3% by 10:37 a.m. London time, after several investors holding a combined 6.51% in the Italian lender said they endorsed a standalone growth plan for the bank.
The stakeholders noted the capital of Banco BPM has “increased significantly,” further noting the lender’s “important dividends” and its growth prospects on account of a “diversified” strategy, according to a CNBC-translated statement.
Banco BPM has faced the prospect of a potential combination, following domestic rival UniCredit
’s unexpected takeover bid launched late last year — which Banco BPM said does not reflect its profitability.
UniCredit has been simultaneously building a stake in German lender Commerzbank without issuing a merger bid to date, leaving it unclear whether Italy’s second largest bank will pursue its domestic or cross-border combination.
News.Az
