Financial markets provided a muted response to the Chancellor’s Spring Statement. Looking at the two best indicators of market reaction, currencies and government bonds, neither moved significantly as Sterling slightly weakened against the Dollar and UK gilt prices increased marginally.
The Chancellor’s statement that the UK will not enter technical recession this year, as per forecasts from the Office for Budget Responsibility, was largely discounted. Current events within the banking sector are a considerable distraction, with ripples spreading through financial markets in the aftermath of the Silicon Valley Bank collapse.