Pound, London Stocks Climb After Truss Resignation
Written by City Radio on October 20, 2022
The London stock market and the pound bounced on Thursday after British Prime Minister Liz Truss announced her resignation following disastrous policies that rocked the markets for weeks.
The pound traded around 0.4 percent higher against the dollar to $1.1273 after Truss ended six tumultuous weeks in power — but analysts said gains were pared by the ongoing uncertainty.
The FTSE 100 index was up 0.1 percent while the country’s borrowing costs eased on the news, as the yield on 30-year government bonds, known as gilts, fell to 3.94 percent.
The government had teetered on the brink of collapse after the resignation of home secretary Suella Braverman Wednesday.
On Thursday, Truss announced that she “cannot deliver the mandate on which I was elected.”
It comes days after the sacking of finance minister Kwasi Kwarteng and the dismembering of her government’s debt-fuelled budget that had sparked chronic markets turmoil.