Can the FTSE beat the UK Budget Blues

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=THDWW0tT41I

As the UK government prepares a pivotal budget, Prime Minister Keir Starmer and Chancellor Rachel Reeves are gearing up for what they describe as embracing the “harsh light of fiscal reality.” This budget, set to be announced on October 30, includes historic tax hikes and increased borrowing aimed at filling a projected £22 billion budget deficit and boosting investments in public services. The budget will reportedly focus on stabilizing the UK's public finances through an estimated £40 billion in tax increases and spending cuts, a significant move toward reshaping Britain's economic trajectory. • Market Reaction and Fiscal Strategy • The announcement has already caused UK gilt yields to edge higher as investors react to anticipated increases in government borrowing. The shift in fiscal strategy under Starmer and Reeves is intended to enhance public services and economic growth, yet carries risks of a potential backlash. Reeves plans to implement new fiscal rules that would allow the government to increase borrowing by as much as £70 billion over the next five years, causing speculation about how financial markets will react. • Seasonal Trend and Market Implications • The FTSE 100 typically enters a strong period of growth from here until the end of the year. Over the last 25 years the FTSE 100 has gained 76% of the time with an average return of 2.80%. Furthermore, the largest gain was a 15.84% return in 2020. So, will the strong seasonal beat the budget blues? If the UK budget is not as bad as markets fear then could we see a relief rally in the FTSE 100 into the end of the year? With Starmer aiming to stabilize the economy, this budget may lead to a lasting shift in UK fiscal policy. The response from gilt markets will be crucial to watch, as borrowing costs could continue to rise if investors feel reassured by La-bour's strategy. This period presents a unique window for fixed-income investors to assess risk and opportunity, as the UK's economic direction could hinge on how well this budget is received by the markets. • Technically the FTSE 100 has been moving sideways and a clean break, on a weekly closing basis, of either level market below could provide near-term direction in the FTSE 100 with key support sitting at 8,100 and 7,800 on the weekly 100 and 200 EMA’s • Sign up here for thousands more seasonal insights waiting to be revealed! https://app.seasonax.com/signup • Trade risks • While the seasonal outlook is favourable, risks remain. The US election is ahead soon and earnings are due, so there are significant risks to this outlook. • Don't Just Trade It - Seasonax It!

#############################

New on site