Anastasia Moroz

Anastasia Moroz

Staff writer and journalist at
Anastasia is a staff journalist and editor at Finbuzz covering finance, banking and technology.
Anastasia Moroz

The FTSE 100 scored roughly 28 points or 0.4% to 7,054, assisted by a 3.4% rise in BAT. Rival Imperial Brands yielded with a 3% gain, as investors warmed to a £38 billion deal that would create the world’s largest listed tobacco group by turnover.

Acacia Mining lit up the mid-cap FTSE 250 index, making a 0.07% increase amounting to 17,955. The company’s shares soared 12% after Acacia’s announcement about pushing annual production from its mines in Tanzania by 5% above prognosis. ‘Core’ third quarter profits increased by 5 times from the previous year making it $124.8 million.

The FTSE Small Cap index fell behind by 1 point at 4,999 with Oxford Biomedica up more than 9% to 3.3p, after Jefferies started covering the company with a ‘buy’ rating and 8p price target.

Sterling dropped and gilt prices increased with the Office for National Statistics disclosing the UK’s budget jumped to £10.6 billion previous month, ahead of an average £8.5 billion prediction by economists polled by Reuters and up 14.5% on a year ago.

Britain has the most considerable paucity of any developed nation and the increase takes the total deficit for the first 6 months of the financial year to £45.5 billion. That is down 5% in comparison with the previous year but is close to the £55.5 billion prognosis for the whole financial year by the budget watchdog in March.

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The pound dropped 3% against the dollar to $1.2208 and was a fraction down against the euro at €0.8919 as ‘hard Brexit’ concerns following May’s first European summit weakened the currency.

ONS September’s report of the first decline in corporate tax revenues also hung on the pound although yields on 10-year gilts experienced two basis points (0.022) to 1.058% as the price of the UK government bonds increased.

Victoria Clarke of Investec Economics said that the ONS numbers could hardly prevent Chancellor Philip Hammond from lifting borrowing and spending in his first Budget next month, if he was positive that a post-Brexit downturn in tax receipts was unavoidable.

‘Provided the chancellor does not view the softer receipts picture today as evidence of a huge hole emerging in his revenue base, he will likely cast this in the context of a more stimulative fiscal policy stance ahead,’ she said.

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