U.K. Markets React Positively to Liz Truss Resignation

Oct 24, 2022

U.K. Markets React Positively to Liz Truss Resignation

British investors applauded Prime Minister Liz Truss' departure after her latest budget plans shook markets and led the Bank of England to intervene.

Stocks, bonds, and the pound rose early Thursday as rumors circulated in British media that Conservative Party legislators were urging Prime Minister David Cameron to leave Number 10 Downing Street. Truss said in a news conference soon after 1:30 p.m. London time that she will quit as prime minister after only 45 days in the position, making her the shortest-tenured British leader in history.

"I am unable to fulfill the mandate for which I was elected by the Conservative Party. I have consequently informed His Majesty The King that I am quitting," Truss stated. "A leadership election will be held within the following week... I shall serve as Prime Minister until a replacement is named."

The FTSE 100, the UK's blue-chip stock index, increased 0.3%, while the FTSE 250, the mid-cap index, jumped 0.9%. Earlier in the day, both indices were in the red.

Government bond yields, known as gilts, fell as the prices of both short- and long-term bonds rose. The yield on the 2-year gilt fell to 3.49% after starting at 3.52%, and the yield on the 10-year gilt fell to 3.87% after opening at 3.96%. The 30-year gilt yield fell from 4.06% to 3.90%. The British pound rose 0.8% versus the dollar, reaching $1.13 from $1.12.

"The market can have some brief comfort that there will be no more Truss-style economic initiatives." "The resignation of Liz Truss heralds the conclusion of a disastrous few weeks," said William Marsters, a trader with Saxo Markets. "Sterling's snakes and ladders game is far from done, but the pound is unlikely to show many indications of long-term recovery."

Truss was voted as the replacement for former Prime Minister Boris Johnson during the summer when Johnson was forced to leave due to a controversy with Covid-19 rules violations. Truss' term, which began two days before Queen Elizabeth II's death, was distinguished by budget provisions that included £45 billion ($51 billion) in unfunded tax cuts.

The recommendations, which resulted in the removal of Chancellor of the Exchequer Kwasi Kwarteng, stunned markets, causing gilt yields to rise to an unprecedented high and driving the pound to an all-time low versus the dollar. It also caused the Bank of England to take unusual emergency action, promising to buy gilts on the open market to help shore up rising losses at pension funds, which are key holders of government debt.

Much of the pandemonium that shook the British financial system has abated after the budget provisions were dropped, but some analysts are concerned about long-term harm to the United Kingdom's image in markets.

"The United Kingdom will continue to be perceived as politically unpredictable in financial markets," said Susannah Streeter, an analyst at Hargreaves Lansdown. "What investors want is greater consistency and dependability, but until they know who will take control and manage an economic recovery, that stability remains elusive, which means that neither sterling nor equities are likely to make big improvements."

Subscribe Our Newsletter

Top Performing Big Cap Stocks.

Milena

Today’s Top Performing Big Cap Stocks Include Micron, Overstock.com, JPMorgan Chase and Others.

Micron Technology's big cap stock falls while JPMorgan Chase and other big banks pass the Fed's annual stress test.

Stocks
Ether Firms Following U.S. Fed, Hits Record High; Bitcoin Trails
Ether Firms Following U.S. Fed, Hits Record High; Bitcoin Trails

Ether, the world's second-largest cryptocurrency, hit an all-time high on Wednesday, catching up with bitcoin's rally and riding on news of wider blockchain adoption.

Banks and Finance
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Anna

BTC Dominance: How It Impacts The Crypto Market
As the most powerful coin, BTC predetermines the crypto market's development, and the Bitcoin dominance index is one crucial indicator that helps with this.

discover
Wyckoff Accumulation Theory

Nato

How to Trade Crypto Using Wyckoff Accumulation Theory

Learn how to trade crypto using Wyckoff accumulation theory. Discover key phases and strategies to master the Wyckoff method for better trading decisions.

Trading
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.