marketsClosed Jul 2, 2025
Today saw gilts finally react to the UK governments failure to legislate a cutback in spending on
welfare
, though not for reasons we were expecting.
welfare
, though not for reasons we were expecting.
Keir Starmer’s lack of public support for his Chancellor Rachel Reeves during Prime Minister’s Questions earlier this afternoon sparked speculation her position is precarious, sending gilt yields soaring by the most since April. The pound plunged.
Those moves have not reversed, despite Starmer later backing her. UK stocks also sunk on the speculation, to finish firmly in the red.
They got off to a stronger start — which now feels like a very long time ago — buoyed by a flurry of M&A activity which is accelerating in the UK. That, compounded by the worst dearth of new listings in 28 years, spells continued shrinkage for London’s stock market.
But that’s…
