UK firms lift guidance as Budget bank surcharge comes in below fears

what happened

According to TradingView's weekly review, several British and international companies revised their outlooks during results season. Computacenter raised its full-year profit guidance to at least £425m, while Shell and BP reported higher earnings on stronger refining margins. HSBC and Standard Chartered posted higher pre-tax profit, whereas Reckitt and Haleon trimmed their revenue forecasts.

Chancellor John Healey unveiled his first Autumn Budget, doubling the bank surcharge to 6% from 3%, below the 8% investors had feared. Banking shares rose, while housebuilders fell as measures for first-time buyers disappointed the market. Retail sales continued to decline in October, and mortgage approvals fell more than expected in September.

why it matters

Two signals matter for markets. Corporate results have broadly supported the index, while the Budget changes the tax burden on banks and housebuilders. Weak mortgage approvals and retail data point to continued pressure on UK consumer demand.

market impact

UK banks: a smaller-than-feared surcharge supports their shares; housebuilders: weaker housing demand weighs on them.

• ▲UK banks pressure up — the surcharge rise was smaller than investors had expected
• ▼UK housebuilders pressure down — first-time buyer measures disappointed the market

tags

instruments