Daily Alert – Tuesday 18th October 2022: Treasury and Bank of England steady the ship

Mark NugentDaily Alert, October 2022

Daily Alert – Tuesday 18th October 2022: Treasury and Bank of England steady the ship

Good morning.

Chancellor Jeremy Hunt’s dismantling of PM Truss’ growth plan, coupled with this morning’s announcement that the Bank of England is to delay Quantitative Tightening, (the selling of the bonds accumulated since 2008 due to the financial crisis and Covid), has steadied the financial ship.

The GBP is up, and UK 2- and 10-year gilt yields are dropping.

However, turning Truss’ growth plan into splintered flotsam, whilst good, leaves the UK without any plan and with tax at a 70-year high, and that is not a growth plan either.

So, more work to be done.

I placed no trades yesterday.

Yesterday’s risk sentiment was positive, and this seems to be rolling over into today. There is little on the economic calendar to frighten the horses, but we have politicians for that.

I will, as always, assess the markets later today to judge if any of my trading themes have come to fruition.

I’ll be back tomorrow.

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