Sunak announces UK income tax threshold freeze whilst Japan begins recovery

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Prosperity Investment Management provides you with a weekly update from markets across the globe.

In his budget speech to Parliament, UK Chancellor Rishi Sunak pledged £65bn of additional fiscal spending in the short term and a temporary tax break for business investment but most individuals will have to pay more tax over time and corporation tax will rise from 19% currently to 25% in 2023.

In the US, the major benchmarks finished mixed as longer-term interest rates continued their ascent. The rise in rates again weighed on growth stocks by increasing the discount on future earnings, while value stocks managed gains, according to Russell indexes. Within the S&P 500 Index, energy shares outperformed as oil prices hit their highest levels in over a year. Technology shares were broadly weak, while consumer discretionary stocks continued to be dragged lower by electric vehicle maker Tesla.

In Asia, according to purchasing managers’ index (PMI) data, the Japanese manufacturing sector grew in February for the first time in close to two years, with domestic manufacturers gradually recovering from the impact of the coronavirus pandemic.