UK Shares Rebound Amid Fiscal Optimism

UK shares rose after recent declines as investors regained confidence in the British economy's fiscal health. The FTSE 100 and FTSE 250 closed up 0.7% each. Finance Minister Rachel Reeves announced a forthcoming budget, while strong performances were noted in mining and healthcare stocks.

Following a challenging session, UK shares recovered on Wednesday with both the blue-chip FTSE 100 and the midcap FTSE 250 climbing 0.7% each. This market rebound comes after investors were previously concerned over the UK's fiscal health.

Amid rising yields on gilts, Bank of England Governor Andrew Bailey downplayed concerns, noting the government's reduced reliance on long-term debt financing. Rachel Reeves, the finance minister, announced a tight spending budget due on November 26 aimed at controlling inflation and borrowing costs.

Mining stocks thrived as Hochschild Mining and Anglo American reported gains. Meanwhile, healthcare and bank stocks also performed well despite concerns over a potential new tax. Energy stocks such as Shell and BP saw declines, alongside Hilton Food Group's drop amid increased seafood costs.

(With inputs from agencies.)