UK Stock Markets Rally as PM Backs Finance Minister Amid Economic Concerns
The UK's main stock indexes rose after Prime Minister Keir Starmer supported finance minister Rachel Reeves, resolving uncertainty over her position. While some concerns about public finances persist, investors reacted positively, with chemical stocks leading the gains. Meanwhile, the Bank of England remains vigilant about inflation indicators.
In a welcome relief for investors, UK's main stock indexes experienced gains on Thursday following Prime Minister Keir Starmer's endorsement of finance minister Rachel Reeves, quelling uncertainties about her future in office.
On Wednesday, the FTSE 100 and midcap index had ended in the red after Reeves appeared emotional in parliament, amidst a financial debacle over welfare reforms. Markets reacted positively as the government passed a stripped-down welfare reform bill, alleviating some fears about the UK economy.
Sectoral gains were evident, particularly in chemical stocks, while Currys surged over market expectations. Nonetheless, lingering concerns about government financial stability persist, alongside heightened anticipation for a potential interest rate cut by the Bank of England to control inflation.
(With inputs from agencies.)
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