FTSE 100 digests UK budget with a positive reaction

The FTSE 100 is now the best performing major European stock market index following the release of the UK Budget. The main reason for this is the launch of a new Tax Free investment allowance for retail UK investors. This will allow an additional £5k per year to be invested in a UK share only Individual savings account (ISA). Now some pundits had called for this to replace the existing ISA, but the chancellor has deemed that daft (as indeed he should). So, this seems to have pushed the FTSE 100 higher, but of course it remains to be seen just now that will play out in reality. Will it really push more savings flow into UK equities and if it does how much will that amount to on an annualised basis? Time will tell, but in real terms it may not have the desired effect. Right now though, the FTSE 100 is feeding off this and also garnering support from what has been a pretty well received budget overall. The index is just now trading at 7,690