This morning, the blue-chip index was down for a third consecutive session ahead of the presentation of the new budget by Finance Minister Jeremy Hunt.

It is expected to include generalized tax increases and cuts in government spending to reassure markets after Liz Truss’ controversial unfunded budget.

"Fighting inflation is my top priority and that guides the tough decisions on taxes and spending that we will be announcing on Thursday," Jeremy Hunt said earlier this week.

The government is looking to raise between 50 and 60 billion pounds in tax increases and spending cuts, according to various press reports.

In other news, the members of the Bank of England estimated that Brexit was responsible for a fall of 3% of the British productivity and that it had "contributed to an increase in prices and a reduction in income".

Among stocks, Royal Mail's parent company International Distributions Services fell 6.3% after posting a first-half loss following postal workers strikes.

 

Things to read today:

France challenges UK for title of Europe’s biggest equities market (Financial Times)

US Stocks Decline as Hopes of a Fed Pause Diminish: Markets Wrap (Bloomberg)