Chancellor Hunt image from YouTube video clip below.

“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.

OK, How Long Will Truss Survive?

— Mike "Mish" Shedlock (@MishGEA) October 16, 2022

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