FTSE 100

Today's data summary

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As of 09:29 06 Feb 2023

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  1. Markets respond positively to Hunt statement

    The pound rose and government borrowing costs fell as investors welcomed the news that Chancellor Jeremy Hunt is reversing almost all tax measures set out in the mini-budget.

    Sterling extended early morning gains against the dollar, and is now trading at around $1.13.

    Graph showing pound dollar

    The news also saw the interest rate - or yield - on UK government bonds fall, making government borrowing less expensive.

    The yield on bonds due to be repaid in 30 years' time, which dropped when markets opened on Monday morning, fell further after Hunt’s statement, to 4.35%.

    Meanwhile, the yield on bonds due to be repaid in five years' time, which underpins the cost of new five-year fixed rate mortgages, also fell to 3.86%.

    The drop in yields suggests financial markets are welcoming the changes to economic plans.

    Chart showing gilts