Does anyone know what happened to equities the day of the 1997 Budget? Given that the Government abolished tax credits on dividends you might expect them to have dropped, to take account of the diminished future income stream that must surely have been expected. Or had investors already factored the probability of tax credits being abolished into their valuations?
I don't remember there being a big drop on the day, but maybe I'm mistaken. So if not, what's the story?