The FTSE 100 experienced fluctuations as the pound showed signs of instability after reports of challenges within the Scottish Labour leadership. On Monday, bond markets also reacted, with the 10-year gilt yield rising by up to 10 basis points to 4.62%, reflecting increased market nervousness.
Investors remain cautious as political developments continue to influence market sentiment, impacting both currency and government bond performance.
**Why this matters**
Movements in the gilt yield affect government borrowing costs and can signal broader economic confidence levels. Meanwhile, fluctuations in the pound impact trade and investment decisions, making political stability a key factor for financial markets.
Source: NewsData