London stocks were set to edge down at the open on Thursday as investors continued to mull the implications of the Budget.
The FTSE 100 was called to open around 15 points lower in what was likely to be a fairly quiet session, with US markets closed for Thanksgiving.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: "Yesterday's Budget announcement went much better than many - including myself - expected. Everyone was braced for drama, volatility and even a few tears to spice it up. But none of it materialised. Apart from the OBR accidentally releasing its forecast an hour early, the measures were largely in line with market expectations and were warmly welcomed by gilt markets.
"We heard plenty of tax rises - about £26bn, though most only kick in around the election year. Reeves opted for a softer stance on benefits, but financed by more people paying taxes. She announced a decent fiscal headroom: investors were seduced.
"But a bleak setup for productivity and growth means that the UK will increasingly rely on financial markets to finance government operations. And that means investors - not voters - end up determining how much the government can spend and how much pain people in the streets must endure. The only way to break this cycle is to grow as much as you spend. I'd say there's a better chance of unicorns invading the skyline.
"The good news: gilt yields have fallen sharply after what was meant to be the most feared Budget in years, and cable is extending gains above 1.32. But again, the BoE now has the green light to cut rates in December. That will cap sterling's upside - though only as much as the USD and the Fed bets allow."
In corporate news, Pennon Group said it swung back into the black in the first half, boosted by higher bills and strong demand over the hot summer months.
The owner of South West Water saw revenues jump 24.8% in the six months to September end, to £658.1m, while underlying pre-tax profits came in at £65.9m. Pennon posted pre-tax losses of £18.6m a year previously.
Self-storage chain Safestore reported a 6.1% rise in fourth-quarter revenue year-on-year with positive contributions on a like-for-like and new stores basis.
Group revenue for the three months to October came in at £62m. In the year to date sales were up 5% to £234m as Safestore opened two new sites in Paris during the period and two more in the UK post financial year end.
The Competition and Markets Authority said it has approved student accommodation group Unite's proposed acquisition of smaller rival Empiric.
Following a Phase 1 investigation, the CMA said it had "cleared" the deal, though a full report on the decision has yet to be published.