With Friday seeing chancellor Kwasi Kwarteng out, Jeremy Hunt in, mini-budget out, and corporation tax in, let’s check in on the UK markets for a quick price reaction.
Stock Market
The FTSE 100, which was faring well in anticipation of the announcement, has fallen back slightly in the past hour.
In fact, any of the gains made in the build-up have all but been engulfed by a red candlestick.
FTSE drops as government chaos spread doubt – Source: capital.com
Big post-U-turn movers on the London stock market include Wizz Air Holdings PLC (AIM:WIZZ), which is now up over 7% day on day, Aston Martin Lagonda Global Holdings PLC (LSE:AML), having added 0.6% post-announcement, and pub group Mitchells & Butlers PLC (LSE:MAB), which has also rallied 0.6% on the news.
Banks
Lloyds Banking Group PLC (LSE:LLOY) held steady at 42.9p, while Barclays PLC (LSE:BARC) has pulled back around 0.6%. NatWest Group PLC (LSE:NWG) is also showing signs of a drawback having dipped 0.13% in the past hour.
HSBC Holdings PLC (LSE:HSBA) did rally slightly but ultimately entered a reversal by the time 3pm rolled around.
Forex
Sterling has also dipped following the Kwarteng sacking, with GBP/USD dropping 0.2% to US$1.12 on the one-hour chart, and falling in similar measures against the euro.
The Japanese yen, Canadian dollar and Swiss franc all gained against the pound.
Gilts
A sell-off in UK government bonds resumed amid the chaos, with UK 10-year gilt yields soared in the lead-up to the announcement and afterwards continuing that trajectory.
The current rate is 4.19%.
The 30-year gilt, having dropped to 4.23% in the morning, climbed to 4.67%, not far off the highs above 5% seen earlier in the week.