For the 4th straight day, UK stocks have experienced decline as official budget watchdog of the British Government cut its forecast for the economic growth by half in 2013. This marks the longest losing streak for the UK stocks in last 4 months. The benchmark gauge FTSE 100 Index has declined by 8.62 points and is now at 6432.7. In 2013, till today’s date, the benchmark gauge has increased by 9.1%, thanks to the economic data of US and the improving Chinese exports. These factors played a positive role in bolstering the confidence in the global investors. Apart from that, the Central Banks also continued with their stimulus measurements. On today, the broader FTSE All Share Index declined by 0.1%. The benchmark gauge of Ireland, ISEQ Index increased by 0.9% on today and is currently at a value that’s the highest in last 4 and a half years.
The Office for Budget Responsibility has lowered the initial forecast of 1.2% economic growth to 0.6% for the current year. The news was announced by George Osborne, the Chancellor of the Exchequer. Osborne also changed the Bank of England’s remit, as he asked the policy makers to set out the arguments for allowing the inflation to go over the target of 2%. In last month, the consumer prices in UK increased by 2.8%, compared to where it stood a year earlier, according to a report published by the Office for National Statistics. Apart from all these, Osborne also commented that the Monetary Policy Committee should be taking alternative stimulus measures for reviving the British economy.
According to the Chief Investment Officer of Coutts & Co., Alan Huggins, Osborne is limited on his resources. Alan added that today’s comments made by Osborne have created a small opening for further stimulus, however, he still thinks that all these comments just formed a confirmation of what has been happening in British economy already.
Eurasian Natural Resources Corp. has declined to a 10-week low figure after announcing its plans to sell the shares. It tumbled by 1.9% on today and each of its shares is currently priced at 306.9 Pence. On the other hand, the biggest online only fashion retailer in UK, Asos Plc. experienced the biggest surge in last 6 months after announcing that its quarterly sales rose by 37%. Each Asos share costs 3355 Pence now.