“The most important objective for our country right now is stability,” said Hunt. This was a near-total reversal of fired Chancellor, Kwasi Kwarteng.
Markets globally reacted favorably to the news.
Market Reaction
- Yield on 10-year UK treasuries (Gilts) fell about 40 basis points (0.40 percentage points), an unusually large move
- The US dollar index fell 1.15 percent to 111.88
- Gold rose about $20 to 1,668
- The S&P 500 is up 93 points, 2.6 percent
- The Nasdaq is up 336 points, 3.3 percent
Hunt Announcement
The markets seem to like what amounts to a tax hike, at least compared to announcements made on September 23.
On October 11, I noted the Bank of England Warns Pension Funds “You’ve Got Three Days to Wind Up Positions”
How Long Will Liz Truss Last as UK’s Prime Minister?
Yesterday, I asked How Long Will Liz Truss Last as UK’s Prime Minister?
Today’s move only removes some of the damage caused by Prime Minister Liz Truss.
This post originated at MishTalk.Com
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