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U.K. equities declined on Tuesday after data revealed the U.K. budget deficit widened more than anticipated in September, reaching the highest level for the month since 2021.Public sector net borrowing rose to GBP 16.6 billion in September from GBP 14.5 billion the previous year, the Office for National Statistics reported. This was the third highest September borrowing since monthly records began in January 1993. Chancellor Rachel Reeves is scheduled to deliver the Autumn Budget 2024 on October 30. The budget is expected to raise taxes and reduce spending by GBP 40 billion. Chief Secretary to the Treasury Darren Jones stated the budget would necessitate difficult decisions to repair the foundations of the economy and begin delivering on the promise of change.In single stock stories InterContinental Hotels Group (IHG) saw a drop in its share price, driven by a decline in revenue per available room (RevPAR) growth in China during the third quarter. While European summer demand remained steady, the company’s RevPAR in China fell 10.3%, as it failed to replicate the strong domestic travel recovery seen in the same period last year. IHG expects to meet market expectations for 2024, which will require a return to around 3% RevPAR growth in the fourth quarter. Analysts on average forecast a 2.6% RevPAR growth for the company in 2024.Mulberry, a UK luxury handbag maker, saw its shares decline by 3.9% to 122.5p after rejecting a second takeover proposal from Frasers Group. Mulberry, majority-owned by Singapore-based Challice, turned down Frasers’ sweetened offer of £111 million, calling it “untenable”. Frasers, a British sportswear retailer, has until October 28 to make a firm offer. Shares in Frasers rose 0.6% , while Mulberry’s stock has fallen around 23% so far this year, and Frasers’ shares have declined by approximately 10%.Alphawave IP Group, a British semiconductor company, reported a 43% increase in Q3 bookings to $104.5 million, leading to an 18.7% jump in its share price to 114.p. The company cited continued strength in IP licensing and multiple new chiplet wins during the quarter, expressing strong confidence in its mid-term guidance and ambition for a $1 billion revenue run rate by 2027. Despite the positive results, the company’s shares are down approximately 11% year-to-date.
Technical & Trade ViewFTSE Bias: Bullish Above Bearish below 8225

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