UPDATE 3-FTSE 100 hits 3-month closing low after new economic plan spooks investors

Reuters

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      Rally in homebuilder stocks fades  
    

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      UK downturn deepens - flash PMI 
    

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      Burberry slides as CFO plans to step down
    

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      FTSE 100 down 2.0%, FTSE 250 off 2.0%
    

  
 (Updates to say the index hit six-month low during the session)
    By Sruthi Shankar
       Sept 23 (Reuters) - UK's FTSE 100 hit three-month
closing lows on Friday after Britain's new finance minister
Kwasi Kwarteng unveiled historic tax cuts and spending plans to
boost the economy, but knocked market sentiment as investor
concerns grew over a huge increase in borrowing.
    Kwarteng announced an economic agenda designed to thrust
Britain out of a cycle of stagnation and into a new era of
higher economic growth - but with a hefty bill attached.
 urn:newsml:reuters.com:*:nL8N30T5LM
    The internationally focussed FTSE 100  .FTSE  closed down
2.0% at it lowest level since June 17. The index fell as much as
2.5% to hit a six-month trough earlier in the session. 
    The domestically focussed FTSE 250 index  .FTMC  also
dropped 2.0% to hit near two-year lows. 
    The plan included scrapping the country's top rate of income
tax and an increase in the corporation tax rate. Kwarteng said
Britain will spend about 60 billion pounds ($67 billion) on
subsidising gas and electricity bills for the next six months
for households and businesses.  urn:newsml:reuters.com:*:nL8N30U1ZE
    "Inflationary headwinds continue and with this tax cut
giveaway potentially only adding to inflationary concerns, it
makes the Bank of England's job of cooling rising costs even
harder," said Charles Hepworth, investment director at GAM
Investments.
    "The good news is that the Bank at least retains its
independence, for now."
    UK's homebuilder stocks  .FTNMX402020  fell 1.3% after
getting a brief boost from the government's plans to cut stamp
duty to help families afford to buy homes. It is among UK's
worst performing sectors this year as rising rates sparked
worries about affordability. urn:newsml:reuters.com:*:nL8N30U1PP
    A survey showed the downturn in British businesses steepened
this month as they battled soaring costs and faltering demand,
hammering home the rising risk of recession.  urn:newsml:reuters.com:*:nZRN0057JP
    "We're very cautious about cyclical equities. We need to see
PMI get to trough levels rather than the downward trajectory
that we're on at the moment," said Roger Jones, head of equities
at London & Capital.
    Data earlier showed British consumer confidence slid this
month to its lowest level since records began in the mid-1970s.
 urn:newsml:reuters.com:*:nL8N30T287
    Oil  .FTNMX601010  and mining  .FTNMX551020  majors were the
biggest drags on the FTSE 100 as commodity prices weakened
against a strong dollar.  O/R   MET/L      
    Among single stocks, Burberry  BRBY.L  fell 4.6% after the
luxury group said Chief Financial Officer Julie Brown was
planning to step down in April.  urn:newsml:reuters.com:*:nL4N30U1BE
    Smiths Group  SMIN.L  rose 1.3% after the industrial
technology group provided an upbeat full-year 2023 forecast.
 urn:newsml:reuters.com:*:nTUC5DWHXV
    Made.com  MADE.L  plunged 20.0% after the online furniture
retailer said it was cutting jobs and mulling options including
a sale as it struggles with a steep fall in consumer spending
and supply chain snags.  urn:newsml:reuters.com:*:nL4N30U0SB
 (Reporting by Sruthi Shankar in Bengaluru; Editing by Anil
D'Silva, Jonathan Oatis and Shailesh Kuber)
 ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6182 2787;))
 
(( 
For related prices, Reuters users may click on - * 
 UK stock report      .L     
 FTSE index:          0#.FTS6  
 techMARK 100 index:  .FTT1X          FTSE futures:      0#FFI:  
 Gilt futures:        0#FLG:          Smallcap index:     .FTSC  
 FTSE 250 index:      .FTMC           FTSE 350 index:     .FTLC  
 Market digest:       .AD.L           Top 10 by vol:      .AV.L  
 Top price gainers:   .NG.L           Top % gainers:      .PG.L  
 Top price losers:    .NL.L           Top % losers:       .PL.L  
 
 
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 UK hot stocks:       HOT  and  GB      Wall Street:           .N 
 Gilts report:        GB/             Euro bond report  GVD/EUR 
 Pan European stock report:  .EU 
 Tokyo stocks:        .T              HK stocks:            .HK 
 Sterling report:     GBP/            Dollar report:       USD/ 
 
 
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 Company directory:   UKEQ           By sector:           FTAX  
 
 
 * For pan-European market data, click on - *
 European Equities speed guide................  EUR/EQUITY  
 FTSE Eurotop 300 index...........................  .FTEU3  
 DJ STOXX index...................................  .STOXX  
 Top 10 STOXX sectors........................  .PGL.STOXXS  
 Top 10 EUROSTOXX sectors...................  .PGL.STOXXES  
 Top 10 Eurotop 300 sectors..................  .PGL.FTEU3S  
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