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Online trading platforms suffered a pre-Budget sell-off yesterday amid fears over the contents of the Chancellor’s red box.
While businesses and households have plenty to worry about – from higher employer national insurance contributions to an increase in bus fares – companies such as CMC Markets and IG Group have been hit by speculation about what might happen. with capital gains tax.
Last week, Keir Starmer sparked outrage when he insisted that anyone who owns shares is not a “working person”, implying they are easy prey for a revenue-hungry Treasury.
Raising the capital gains tax on stock sales would mean fewer profits for investors and less incentive to invest.
Budget threat: Online trading platforms such as CMC Markets and IG Group have been hit by speculation about what could happen to the capital gains tax.
CMC fell 5.3 per cent, or 17 pence, to 302 pence, and IG Group lost 3.3 per cent, or 30.5 pence, to 895.5 pence. Rivals Plus 500 (down 4.2 per cent, or 102p, to 2,326p) and
AJ Bell (down 2.5 per cent, or 11.5p, to 454p) also struggled.
As investors nervously awaited the budget, the FTSE 100 index fell 0.8 per cent, or 66.01 points, to 8,219.61 and the more domestically focused FTSE 250 lost 1 per cent, or 212 .31 points, to 20,622.79.
Education-focused publisher Pearson said it is starting to see business benefits from artificial intelligence, as it reported a rise in third-quarter sales and reiterated its full-year outlook.
Pearson said underlying sales growth was 5 percent in its latest quarter, which comprised growth across all of its divisions.
The third quarter figure represented an improvement over the first and second quarters, as growth was 3 percent year-to-date.
CEO Omar Abbosh said the company would accelerate its AI capabilities across the business. Pearson shares gained 4.3 per cent, or 46.5p, to 1,118p.
Asia-focused financial stocks featured prominently among the blue-chip gainers, supported by a positive reading of global banking giant HSBC’s strong third-quarter results.
HSBC was among the biggest risers on the FTSE 100, rising 3.1 per cent, or 21.6 pence, to 713.7 pence, lender Standard Chartered added 1.2 per cent, or 10.6 pence, to 876.4 pence, but insurer Prudential was down 0.5 per cent, or 3 pence. at 649p.
Heavy miners also rose as metal prices rose: Chilean copper group Antofagasta rose 0.4 percent, or 8 pence, to 1,815 pence, Anglo American gained 0.8 percent, or 20 pence, to 2,483 pence, and Rio Tinto rose 1.1 per cent, or 54 pence. at 5131p.
On the second line, Elementis was among the risers on the FTSE 250, gaining 0.3 per cent, or 0.4p, to 138.6p, as the specialty chemicals business outperformed in the third quarter and said it was well positioned to achieve a full year. financial performance in line with expectations.
Away from the results, wealth manager St James’s Place lost 2.8 per cent, or 23.5p, to 825.5p, as analysts at Bank of America downgraded its rating to neutral from buy after cutting its target price.
Chip wafer maker IQE fell 20.4 per cent, or 2.98 pence, to 11.62 pence, as it revealed Américo Lemos had resigned as its chief executive.
Jutta Meier becomes interim CEO in addition to her CFO role.
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