FTSE 250 Climbs Amid Insurance Sector Drama and Business Tensions

The UK's FTSE 250 index rose as Direct Line rejected Aviva's takeover, impacting insurance stocks. Spirax-Sarco and Sainsbury enjoyed brokerage upgrades. Renewi surged due to Macquarie's takeover interest. The UK government's tax policy drew business criticism, while traders speculated on Bank of England's next move.

The UK's FTSE 250, a bellwether for the domestic economy, posted gains on Thursday thanks to key developments in the insurance sector. Direct Line boosted the sector significantly by rejecting Aviva's $4.16 billion takeover offer, causing its shares to jump by 41% while Aviva's shares dropped 2.3%.

In other market movements, Spirax-Sarco Engineering and Sainsbury benefited from positive brokerage ratings, with respective stock climbs of 3.9% and 3.1%. Renewi soared 46% after interest from Macquarie for a takeover deal, and Dr Martens saw an 11.8% rise on robust first-half results.

On the downside, Energean fell 8.6% following a reduced production forecast. Meanwhile, the UK's new tax-raising budget drew criticism from business leaders, with negative impacts on business sentiment, especially in the services sector. The Bank of England is expected to maintain borrowing costs amid inflation concerns.

(With inputs from agencies.)