UK's Midcap Surge: Homebuilders and Real Estate Sectors Shine Amid Tax-raising Budget

The UK's midcap index reached a two-week high on Thursday following a tax-raising budget announcement by Finance Minister Rachel Reeves. The FTSE 250 rose, bolstered by gains in homebuilders and real estate stocks, while the pharma and energy sectors faced declines. U.S. markets were closed for Thanksgiving.

The UK's midcap index saw a significant rise on Thursday, hitting its highest in two weeks shortly after Finance Minister Rachel Reeves presented a significant tax-raising budget. This boost suggests newfound confidence among investors.

The FTSE 250, a key indicator of UK-based companies, climbed 0.9%, achieving its fourth consecutive session of gains. Predictions hint at a potential recovery in the demand for new homes, which would provide a necessary advantage for British homebuilders as the recent budget eliminated buyer uncertainties.

Despite the overall optimism, the pharma sector experienced a dip, with AstraZeneca falling nearly 1%. Energy stocks were similarly down, and gambling firms faced losses due to upcoming tax hikes. However, some sectors continued to show resilience, such as online fashion, with Debenhams reporting a notable surge.

(With inputs from agencies.)