Market reaction to UK Prime Minister resignation

Commenting on the resignation of the UK Prime Minister Liz Truss, RLAM Head of Multi Asset Trevor Greetham said:

“Market reaction to Liz Truss’s resignation has been very muted. It isn’t a great surprise and most of the planned tax cuts that upset the bond market were abandoned when Jeremy Hunt took office as Chancellor.

“The best outcome for markets would be a rapid rallying of the parliamentary Conservative party around a single candidate who would validate Hunt’s approach and the timing of the 31 October report from the Office for Budget Responsibility.”

– ENDS –

The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.