How do the markets behave on the days around Budget day?
The UK Budget used to be in April, after the start of the fiscal year, but these days it is in March, before the end of the fiscal year. The Chancellor of the Exchequer is expected to give his Budget to Parliament next week, on the 23rd.
The following chart shows the daily returns since 2005 for the FTSE 100 for the three days around Budget day:
For example, in 2005 the Budget was on 16 March, the day before the Budget the FTSE 100 rose 0.5%, on Budget day the index fell 1.3%, and on the day after the index fell 0.3%.
The following chart shows the average ...