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Confidence in UK Markets Vanishes as Pound Plunges

  • ‘It was a shock as the details came out:’ StanChart’s Hewin
  • Five-year bond yields surge past 4% as pound tumbles
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Don't Buy the Pound Today: Steven Englander

On a day when losses were cascading across global markets, the UK stood out as the worst of the worst. 

Confidence in UK market vanished on Friday as the pound plunged below $1.09 and gilt yields skyrocketed. After Chancellor of the Exchequer Kwasi Kwarteng outlined tax cuts and spending plans, traders expressed dismay about how the British government will be able to fund its radical ambitions. Even more ominous, some questioned the Britain’s financial stability and worried about market dysfunction.