FTSE 100 Index Rises Thanks To Shell and BP Stocks, British Pound (GBP) Weakens After Thursday Morning Strengthen
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Summary:
- Oil Giants are required to pay more taxes on profits.
- The BoE is put under more pressure
FTSE 100 rises with BP and Shell stocks
On Thursday oil giants Shell and BP were informed they would be required to pay 25% extra taxes on their profits from the North Sea. Investors did not seem to lose interest in these stocks despite this news, the share prices of both these companies rose.
The Chancellor also announced there would be an extra tax incentive to invest in pumping up more oil and gas. Therefore it is possible that the oil giants can avoid almost their entire tax bill.
FTSE 100 Price Chart
GBP Weakens after its rally on Thursday morning
On Thursday Chancellor Rushi Sunak announced that more than 8 million households would receive a lump sum of GBP650.00 in an attempt to try to fend off the cost of living crisis. The Chancellor also announced there would be a GBP15 billion spending boost. The move will put the Bank of England (BoE) under more pressure going forward, possibly forcing the BoE to raise interest rates even more.
The Pound Sterling faces negative market sentiment in the wake of this news as the likelihood of a recession looms closer.
Read next: FOMC Meeting Minutes Offer Support To The US Dollar (EUR/USD), Improved Market Attitude Favoured The GBP On Thursday (EUR/GBP, GBP/USD), Market Awaits RBA Monetary Policy
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Sources: finance.yahoo.com, poundsterlinglive.com
