5 things to watch on the FTSE 350 on Friday

Where will the FTSE 350 go on mini-budget day?

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The FTSE 350 remained steady most of Thursday, before dipping after interest rates were hiked again. All eyes on Friday will be on the mini-budget.

Interest rate reaction

The Bank of England’s Monetary Policy Committee chose to lift interest rates by 0.5% Thursday, to reach a 14-year high. Speculation had grown through the day that the hike could reach 0.75%.

The FTSE 100 dipped after the announcement, losing 78 points to end the day down 1.1% at 7,160. JD Sports Fashion was the biggest faller in the top index, dropping 8.4%, but that was down to disappointing interim results.

The FTSE 350 fell 1.2%, losing 49 points to finish Thursday at 3,959. We could see further interest rate effects Friday, though that should be quickly overshadowed by the mini-budget.

US markets

Commentators have been talking about growth fears in the US, but American stocks had a relatively gentle day Thursday.

The S&P 500 declined by 0.8%, which is a fairly modest drop compared to the bigger swings we’ve been seeing all week. Technology stocks on the Nasdaq had a slightly tougher day, falling 1.4%.

Will US calm help keep UK markets cooler on Friday?

Mini-budget day

The big Friday event is the mini-budget. New chancellor Kwasi Kwarteng is due to outline the government’s plans at 09:30, and people have been speculating over what he might change.

Some kind of tax cuts seem to be the favourites, with company tax and stamp duty high on many pundits’ lists. It’s already been confirmed that the recent National Insurance rise will be reversed.

We might even see the cap on bankers’ bonuses ended, so we’ll have to see if that has any effect on financial stocks.

Dividend payments

There’s not a lot of company news coming Friday. But final dividend payments should be on their way to Auto Trader Group shareholders.

It’s also interim dividend payment date for a number of companies. They include Anglo American and SEGRO in the FTSE 100. FTSE 250 stocks RHI Magnesita, Rotork, St James’s Place, and Hochschild Mining are among those paying too.

Oil and gold

The gold price has been edging up all week, as investors head increasingly for safer havens. The escalation of the Ukraine war possibly has something to do with it. At the time of writing, gold stands at $1,672 per ounce.

Oil, meanwhile, is declining slowly. Brent crude dipped below $90 per barrel, but is priced at $90.46 at the time of writing.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

The Motley Fool UK has recommended Auto Trader and Rotork. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Young black man looking at phone while on the London Overground
Investing Articles

Is buying one of the best performing FTSE 100 stocks in 2023 wise right now?

Volatility has hurt many FTSE 100 stocks. Is one of the better performing shares on the UK’s premier index a…

Read more »

Young Caucasian woman with pink her studying from her laptop screen
Investing Articles

Is the Shein IPO a nightmare for the boohoo share price?

It was revealed today that Chinese fast fashion giant Shein is preparing to go public in the US. What now…

Read more »

Aerial shot showing an aircraft shadow flying over an idyllic beach
Investing Articles

Is the easyJet share price set to soar in 2024?

The easyJet share price is lower today than in the 2020 stock market crash. Can that be right? Might it…

Read more »

British bank notes and coins
Investing Articles

Should I buy M&G shares for the 9.8% dividend yield?

With the M&G dividend yield close to double digits, this existing shareholder explains why he'd happily buy more of the…

Read more »

British Isles on nautical map
Investing Articles

This cheap UK stock could rise 30%, the City says

Analysts covering Serco Group shares reckon they could rise by over a quarter. But is this UK stock a good…

Read more »

2024 year number handwritten on a sandy beach at sunrise
Investing Articles

Here’s how I’d aim for a million by investing £45 a day

Christopher Ruane thinks putting £45 a day into blue-chip shares could help him aim for a million. Here are some…

Read more »

Light trails from traffic moving down The Mound in central Edinburgh, Scotland during December
Investing Articles

I’d buy FTSE 100 shares in December before the next stock market rally!

Christopher Ruane explains why he would happily snap up cheap FTSE 100 shares between now and the end of the…

Read more »

Businesswoman calculating finances in an office
Investing Articles

6% yield and 8% annual revenue growth! A passive income opportunity

Why not have the best of both worlds? Our writer explores a passive income opportunity with a 6% yield, bolstered…

Read more »