UK Markets Rebound as Starmer Quashes Fears of a Reeves Exit

UK markets rebounded from a sharp selloff as Prime Minister Keir Starmer sought to calm speculation about a possible exit by Chancellor of the Exchequer Rachel Reeves.

Bond and equity markets recovered some of their losses from a slump triggered by concern a new chancellor might usher in increased borrowing. In a BBC interview late Wednesday, Starmer gave Reeves his full backing and the chancellor later reiterated the government’s commitment to its fiscal rules in an unscheduled TV appearance.