What Will The Markets Make Of PM Sunak?

Markets react well to Sunak

Nobody appreciated seeing the back of Liz Truss as much as traders and investors. Uncertainty is very bad for the markets and, over her short reign as PM, Truss proved to have the shakiest hand imaginable.

Sunak And The Digital Currency

Sunak will attempt to fulfil the promises he laid out as chancellor back in April this year. These include introducing a “financial market infrastructure sandbox,” establishing a “Cryptoasset Engagement Group,” and enabling stablecoins — digital tokens equalling one unit of fiat currency — to be used “as a recognised form of payment.” The end goal of all this would be to uphold Britain’s status as the global leader in financial innovation. “Britcoin,” the unofficial moniker for the UK’s proposed central bank digital currency could be linked to a digital i.d system. With Sunak’s links to digital id and tracking in China, this has worried many. Stay tuned for more on this.

So, what’s next?

A lot will be riding on Jeremy Hunt’s market-steadying debt-cutting plan which is scheduled to be announced later today. Hunt, hurriedly appointed by Truss, has kept his position as Chancellor and has already reversed many of the measures his predecessor put in place — in line with Sunak’s own agenda when he was chancellor under Boris Johnson.

Over to you!

How do you think Sunak will fare as PM? Let us know by tweeting us at @_Contentworks.

Top trading events this week

It’s going to be a pretty quiet week, but here are the hottest events for your trading calendar.

Monday

● CNY — NBS Manufacturing PMI (OCT)

Tuesday

● AUD — RBA Interest Rate Decision

Wednesday

● NZD — Employment Change QoQ (Q3); Unemployment Rate (Q3)

Thursday

● GBP — BoE Interest Rate Decision

Friday

● NZD — RBA Statement on Monetary Policy

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