26th Nov 2025 06:55
(Alliance News) - Stocks in London are set to open higher on Wednesday, ahead of the announcement of the UK government's latest budget by Chancellor Rachel Reeves.
IG says futures indicate the FTSE 100 to open up 25.6 points, 0.3%, at 9,635.13 on Wednesday. The index of London large-caps closed up 74.62 points, 0.8%, at 9,609.53 on Tuesday.
Sterling was at USD1.3192 on Wednesday morning, up from USD1.3183 at the London equities close on Tuesday. The euro was higher at USD1.1590 from USD1.1569. Against the yen, the dollar was marginally higher at JPY156.14 versus JPY156.13.
Rachel Reeves acknowledged people are "angry at unfairness" in the British economy ahead of unveiling her second budget on Wednesday.
In a filmed address ahead of the budget, the UK chancellor said the government had started to see results in the past year with "wages rising faster than inflation, hospital waiting lists coming down, and our economy growing faster and stronger than people expected".
"But I know there is more to do," she said. "I know that the cost of living is still bearing down on family finances, I know that people feel frustrated at the pace of change, or angry at the unfairness in our economy.
She described the budget as being for "the British people" and said the government would work with them to "build a fairer, stronger and more secure Britain".
The chancellor insisted she will use her budget to introduce measures to tackle the cost-of-living crisis, as the beleaguered government hopes to keep backbench Labour MPs on side amid an expected series of tax rises.
Reeves has also vowed to reduce the costs of government debt and is expected to take steps to increase the leeway above her borrowing plans, as she attempts to maintain fiscal credibility.
Earlier this month, she dropped plans to hike the headline rate of income tax, something which would have broken a Labour manifesto pledge, amid improved economic forecasting.
However, the chancellor still intends to pursue a strategy of increasing her fiscal headroom, a buffer on her self-imposed borrowing rules.
The chancellor will deliver the budget statement to Parliament around 1230 GMT on Wednesday, after Prime Minister's Questions. These start at 1200 GMT and usually last around 30 minutes.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.4%, while the S&P 500 climbed 0.9% and the Nasdaq Composite gained 0.7%.
The yield on the 10-year US Treasury widened slightly to 4.02% on Wednesday morning from 4.01% at Tuesday's close. The yield on the 30-year was at 4.66%, widened from 4.65%.
In Asia on Wednesday, the Nikkei 225 in Tokyo was up 1.7%. In China, the Shanghai Composite was 0.2% lower, while the Hang Seng Index in Hong Kong advanced 0.3%. The S&P/ASX 200 in Sydney gained 0.8%.
US President Donald Trump has announced two simultaneous meetings of US representatives with Russia and Ukraine to negotiate the final contentious points of their peace plan.
"In the hopes of finalizing this Peace Plan, I have directed my Special Envoy Steve Witkoff to meet with [Russian] President [Vladimir] Putin in Moscow and, at the same time, Secretary of the Army Dan Driscoll will be meeting with the Ukrainians," Trump posted on his social media platform Truth Social.
The Kremlin confirmed Witkoff will visit Moscow next week for talks with Putin.
"A preliminary agreement has been reached on (Witkoff's) visit to Moscow next week," Putin's foreign policy adviser Yuri Ushakov said on Russian TV, adding that several other officials from President Donald Trump's administration would accompany him.
Gold was up at USD4,151.70 an ounce early on Wednesday from USD4,132.40 late Tuesday. Brent oil was trading higher at USD61.95 a barrel from USD61.71.
Wednesday's UK corporate calendar has half-year results from property developer Helical, equipment hire firm Speedy Hire, and celebration cakes retailer Cake Box.
Along with the UK budget, the economic calendar has the Beige Book in the US.
By Michael Hennessey, Alliance News reporter
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