Pound and gilts hold up

The Daily Telegraph - Business - - Business - By Louis Ash­worth

THE pound and gilts were left un­moved by Rishi Su­nak’s Win­ter Plan, while stocks were more pre­oc­cu­pied by wider global eco­nomic con­cerns yes­ter­day.

Ster­ling traded within a nar­row range, end­ing 0.1pc higher at $1.28.

Seema Shah, at Prin­ci­pal Global In­vestors, said Mr Su­nak’s plan “will only stem the bleed­ing for so long”, and that wor­ries over the UK econ­omy are likely to put fur­ther pres­sure on ster­ling as Brexit ne­go­ti­a­tions near a cli­max.

On the bond mar­kets, the story was sim­i­lar: yields barely budged, mean­ing in­vestors are no more con­cerned about the risk­i­ness of UK govern­ment debt than be­fore mea­sures were an­nounced.

Nikesh Pa­tel, at Kem­pen Cap­i­tal Man­age­ment, said the lack of move­ment was tes­ta­ment to mar­kets’ faith in the BoE’s ap­petite for bond buy­ing.

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