UK Stock Market Rebounds Amid Fiscal Concerns

UK shares experienced a rebound, driven by healthcare and mining stocks, following a sharp decline amid fiscal worries. The FTSE 100 and FTSE 250 both rose by 0.5%. Finance Minister Rachel Reeves announced the upcoming budget, aiming to control public spending to reduce inflation and borrowing costs.

UK shares rebounded on Wednesday as healthcare and mining stocks led the recovery. This comes after the market faced its worst day in nearly five months due to fiscal concerns. Both the FTSE 100 and FTSE 250 indices increased by 0.5% as of 1011 GMT.

British finance minister Rachel Reeves announced she will deliver the annual budget on November 26, emphasizing the need for a 'tight grip' on public spending to manage inflation and borrowing costs. Concerns over fiscal control persist, with fears that tax increases might hamper growth without significantly boosting revenue.

On the market, gilt yields for British 20- and 30-year bonds rose to their highest since 1998, while sterling extended its losses. Precious metal and industrial miners saw gains, with Fresnillo and Hochschild Mining climbing significantly, and Glencore, Anglo American, and Antofagasta advancing over 2.5% each.

(With inputs from agencies.)