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Investing.com -- Confidence among U.K. traders is weakening ahead of Wednesday’s Autumn Budget, with a new CMC Markets survey showing widespread concern that the Chancellor’s measures could hurt both the economy and financial markets.
Nearly two-thirds of respondents expect the Budget to be “bad for the UK economy,” while a similar share believe it will be “bad for me,” reflecting anxiety around potential tax rises, changes to ISA structures and broader fiscal tightening.
CMC Markets surveyed traders and investors ahead of the announcement, finding that 68% think the Budget will negatively affect them personally and 53% fear it will make trading in the U.K. less profitable.
ISA reform is a particular flashpoint, with 82% expressing concern about potential changes. Currency sentiment is soft as well, with 68% expecting the pound to weaken if current predictions about the Budget prove accurate.
Laurence Booth, Global Head of Capital Markets at CMC Markets, said traders are already preparing for potential fallout across major asset classes.
“In the lead up to the Budget announcement, our clients have told us that they are primarily concerned about it making trading less profitable in the UK,” he said.
“Nearly seven in ten of traders and investors believe the Budget will be bad for them, with over three fifths predicting that it will also be bad for the UK economy.”
Booth noted that expectations of a softer pound reflect worries about weaker growth and the sensitivity of markets to even minor rate moves.
“Many believe that the Chancellor’s measures could reinforce the weak growth backdrop, as even small shifts in interest rates can drive significant movements in gilts, the FTSE, and the pound,” he said.