Newly appointed Chancellor Jeremy Hunt has bagged a “positive” reaction from the markets, but the shift is “devastating” for Liz Truss’s premiership, an expert has warned. 

Joshua Raymond, Director at online investment platform XTB comments: “We’ve seen the markets react positively to the Chancellors’ statement.

“The pound has gained against every major currency today including 0.5 percent against the US dollar and euro.

“Long-dated gilt yields have fallen sharply with the 30year bond yield dropping by more than 0.4 percent.

“The statement provides some much-needed clarity ahead of the OBR forecasts due out in two weeks time.

“Perhaps the largest news is the earlier cut-off to the energy price cap to April next year.

“This is a significant development both financially and politically.

“Financially, the energy price cap is one of the largest contributions to the black hole in the fiscal budget and gives the government more headroom for tighter fiscal cuts especially should a global recession force energy prices lower than expected in the medium term.

“Politically however it’s devastating for the Liz Truss premiership.

“It’s a complete reversal on every single major political pledge she has made to date and as a result, her political authority is most likely at an end.

“In a matter of days, I expect the market focus to shift more towards who replaces Liz Truss as Prime Minister of the UK.

“Liz Truss today became Prime Minister in name only.”