UK’s main indexes jumped on Friday, on growing expectations that the UK government will announce a U-turn on elements of its 43-billion-pound package of unfunded tax cuts that sparked turmoil in financial markets over the past few weeks.
The blue-chip FTSE 100 gained 1.4% by 0716 GMT, while the domestically focussed FTSE 250 added 1.5%, helping both indexes recoup a large part of their losses this week.
The pound eased slightly, but held near a one-week peak, following news that British finance minister Kwasi Kwarteng left Washington early amid reports that Prime Minister Liz Truss is considering reversing more of her government’s “mini-budget”.
The Bank of England’s emergency bond purchases –– to protect pension funds caught up in the market chaos sparked by the tax cuts announced last month –– are due to end on Friday.
Among stocks, International Distributions Services fell 8.9% after it said that unit Royal Mail could cut as many as 5,000 to 6,000 jobs by the end of August next year.
Emerging markets-focussed investment group Ashmore gained 1.6% despite reporting an $8 billion fall in assets under management for the September quarter.