Prime minister Sunak faces 'fraught' economic outlook for the UK

The investment industry has reacted to the incoming prime minister

Valeria Martinez
clock • 3 min read

The new prime minister Rishi Sunak will enjoy a honeymoon period and a relief rally in the markets as he takes on the role today (25 October), Valeria Martinez finds, but experts have warned that it may be short-lived

Former chancellor Rishi Sunak has been successful in his bid to become the new Conservative Party leader and thus next prime minister, replacing Liz Truss, who resigned on 20 October after just 44 days in office.  The news has spared markets any additional uncertainty today, with sterling edging higher after the announcement and falling gilt yields bringing hope that borrowing costs may continue to ease. Ten-year gilt yields are down 6% to 3.8%, while two-year gilt yields have decreased to 3.3%, from 3.8% last Friday. Sterling is broadly flat on the day at $1.13, having retraced sligh...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Markets

Market Movers: Advisers expecting healthy UK equities growth

Market Movers: Advisers expecting healthy UK equities growth

‘It’s no surprise investors are warming up to UK equities again’

Professional Adviser
clock 13 June 2024 • 1 min read
OBR shows UK growth flatlined in April as general election looms

OBR shows UK growth flatlined in April as general election looms

Challenges PM's claims 'the economy has turned a corner'

Eve Maddock-Jones
clock 12 June 2024 • 1 min read
Back to low inflation: How can we expect the rest of 2024 to play out?

Back to low inflation: How can we expect the rest of 2024 to play out?

‘By August, the conditions will be met to start cutting’

Charlotte Moore
clock 23 May 2024 • 4 min read