Short sellers are eyeing UK stocks as concerns over Rachel Reeves’ Budget decisions grow. Meanwhile, Trump delays a major tariff plan, shifting market sentiment. On the tech front, BigBear.ai is seeing a huge surge in stock value thanks to AI momentum and US government backing.
Short Sellers Targeting UK Stocks Amid Budget Uncertainty
Short sellers are focusing on UK stocks that could be impacted by Rachel Reeves’ upcoming Budget decisions. Market sentiment remains cautious as businesses face rising costs and concerns about the government’s ability to stimulate economic growth.
The Bank of England’s recent downgrade of the UK’s growth forecast to 0.75% for 2025 and a predicted inflation rise to 3.7% this year only add to the uncertainty. Companies expected to face higher employment costs from April may raise prices to compensate, further driving inflation and dampening consumer spending.
In January, consumer confidence dropped significantly, reflecting worries over both the UK economy’s current state and its future. Business confidence is similarly low, with reports showing it at its lowest since the aftermath of the 2022 mini-Budget.
Trump Delays Tariff Plan as Global Markets Rally
US President Donald Trump has delayed a major reciprocal tariff plan, signalling the possibility of trade negotiations. Trump’s decision to direct the US Trade Representative and Commerce Secretary to investigate these tariffs comes as global markets respond positively.
The investigation will examine tariffs imposed by other nations on US goods, as well as non-tariff barriers like subsidies and exchange rates. The investigation is expected to conclude by 1 April, with the potential for swift action thereafter. If implemented, these tariffs could mirror those the US faces from other countries, potentially targeting industries like automobiles, computer chips, and pharmaceuticals.
BigBear.ai Stock Soars Amid AI Industry Momentum
BigBear.ai’s stock has seen impressive gains, climbing 185% in the last 30 days, and an astounding 380% over the last year. This surge follows a major AI summit in Paris, where global political and tech leaders discussed the future of artificial intelligence.
While BigBear.ai focuses primarily on the US market, the broader shift in AI regulation, especially in Europe, has helped boost investor confidence. Additionally, Vice President JD Vance’s recent statements indicating strong US government support for AI further fuelled the company’s growth.
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