(Reuters) -UK stocks edged higher in choppy trading on Tuesday as investors awaited a highly anticipated budget this week which is expected to include significant tax measures, while key U.S. economic data was also in focus.
The blue-chip FTSE 100 edged higher 0.2% as of 10:50 GMT, while the FTSE 250 index of domestically oriented UK firms rose 0.1%.
Among sectors, non-life insurers fell 3.3% after speciality insurer Beazley plunged 9.4% after the company cut its annual insurance written premiums forecast.
The travel and leisure sector lost 1% with cruise operator Carnival falling 5.5%.
Banks gained 0.3% after a Goldman Sachs note referred to a Financial Times article that the sector would be spared from taxes. Lloyds Banking rose 1.8%, Barclays added 1.1% and NatWest Group climbed 1.4%.
Industrial metal miners gained the most, rising 1.1%, after copper and iron ore prices increased. Antofagasta rose 2.7%, while Anglo American added 2.2%.
Personal goods added 1.1% with Burberry up 1.6%.
Retailers added 1%, with Kingfisher climbing 4.7% after the home improvement retailer raised its annual profit forecast.
Among other moves, food catering firm Compass Group shares fell 2.7% after the company forecast profit growth and organic revenue growth for 2026 roughly in line with expectations.
Domino’s Pizza Group lost 3.6% after CEO Andrew Rennie stepped down, marking another senior departure as the company shifts strategy to tackle weak sales and rising costs.
AO World rose 5.9% after the company raised its annual profit forecast for the second time in three months.
Investors are awaiting Wednesday’s UK budget announcement from Finance Minister Rachel Reeves, following mixed signals on potential tax hikes.
The government now appears unlikely to raise income tax but is expected to target increases in several other levies.
Markets also await the release of a producer inflation report and retail sales figures in the U.S., among the first major datasets to be released following the longest-ever government shutdown.
(Reporting by Utkarsh Tushar Hathi; Editing by Shreya Biswas)
