The FTSE 100 surged almost 1% post the Autumn Budget by Rachel Reeves, benefiting banks as no profit levies were imposed. Housebuilders initially dropped but later recovered. St. James’s Place saw a 4.64% increase, with Rank Group rising 12.31% due to bingo duty abolition from April 2026.

UK banks like Lloyds, Barclays, and NatWest gained post-budget due to no bank tax imposition. Financial services sector in the FTSE 100 has surged over 30% this year. Morningstar’s Michael Field notes strong stock valuations in banks.

Housebuilders like Barratt, Persimmon, Taylor Wimpey, and Bellway fell over 4% post-budget announcements but recovered. Berkeley Group’s 1.56% fall was the largest among housing stocks. A £40 billion social home program was announced, promising 1.5 million homes over a decade.

Changes in ISA allowances in the budget aim to boost UK stock market investments. Morningstar’s Field predicts a shift from 70% cash to 60/40 ratio in ISAs, potentially adding £10 billion in equities. Fidelity International’s Caroline Shaw remains cautious on UK equity outlook despite budget announcements.

Read more at Morningstar: FTSE 100 Winners and Losers: Banks Up, Housing Stocks Down on Autumn Budget