Following a wild ride in stocks the previous session, U.S. stock index futures pointed to a higher open on Wall Street following key U.S. bank earnings. British government bonds increased on Friday amid speculation that the government would change its fiscal plans.
For a second day, the yen’s value against the dollar fell to a 32-year low.
Recently, the unfunded tax cuts announced in a ‘mini-budget’ last month forced the Bank of England to intervene to calm the market for government bonds, or gilts.
After less than six weeks on the job, Britain’s finance minister Kwasi Kwarteng was fired, the BBC reported on Friday amid rumours that Prime Minister Liz Truss will modify some of her economic policies. At 1300 GMT, Truss will conduct a press conference.
According to Matteo Cominetta, economist at the Barings Investment Institute, ‘the bond markets are in a nice mood right now – finally yields are drifting down, primarily led by the UK, where there are these speculations there is going to be a significant U-turn on the policy.’
Post Your Comments