UK Stocks Climb Amid Budget Anticipation and Market Fluctuations

UK stocks saw modest gains as investors anticipate an upcoming national budget and focus on key U.S. economic data. Key sectors like blue-chip FTSE, non-life insurers, travel, banks, miners, and retailers experienced varying performance amid market uncertainties and the expectation of new tax policies.

In a cautious trading session on Tuesday, UK stocks experienced a slight uptick, driven by investor anticipation of this week's important budget release, which is expected to introduce major tax measures. The market also kept a keen eye on pending U.S. economic data.

The FTSE 100 improved by 0.2% by 10:50 GMT, while the FTSE 250, representing domestic UK companies, rose by 0.1%. However, non-life insurers saw a 3.3% drop, heavily impacted by a 9.4% plunge in Beazley shares after the specialty insurer revised its annual premium forecast downwards.

In contrast, the industrial metal mining sector thrived with a 1.1% increase, spurred by higher copper and iron ore prices. Notably, Antofagasta grew 2.7% and Anglo American gained 2.2%. Investors await Finance Minister Rachel Reeves' budget announcement on Wednesday, particularly after mixed signals on possible tax hikes.

(With inputs from agencies.)