UK stocks are up after the announcement that Boris Johnson will step down as prime minister.
The FTSE 100 index, which brings together the top 100 stocks on the London Stock Exchange, was trading up just over 1% at opening hours.
The British pound also gained a bit, trading 0.75% higher at 1.20 against the dollar, rebounding slightly from two-year lows hit earlier this week.
The British economy still faces serious challenges as it grapples with high inflation, slowing growth and the cost of living crisis.
Walid Koudmani, chief market analyst at exchange XTB, wrote in a note to clients that the pound “remains severely weak due to the dire state of the UK economy, which is underperforming its peers, [e] will likely go into recession as the Bank of England refuses to raise interest rates aggressively to deal with escalating inflation.”
Source: CNN Brasil
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