MARKET TALK: UK Bank, Retail Shrs Recoup Losses After Budget

22nd Jun 2010 14:49

1349 GMT [Dow Jones] Banking and retail stocks recoup losses and gain following the UK Budget Report. Traders note the levy on banks is less severe than had been expected. "The levy is set to raise as much as GBP2B [a year] when earlier estimations by the market were that it could be more aggressive and raise GBP3B," says Joshua Raymond at City Index. Meanwhile, retailers also get a boost from Osborne's speech. "Whilst the VAT hike is likely to have an effect on the ability of consumers to spend cash, the hike to 20% is a little less severe than some of the more drastic numbers speculated and by delaying the hike to next year, it gives retailers and consumers an adjustment period to get their houses in order," says Raymond. Marks & Spencer (MKS.LN) +3.2% and Next +2.7%, while Lloyds Banking Group +2.7% and RBS +0.3%.([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 22, 2010 09:49 ET (13:49 GMT)