Global Markets Driven by UK Politics and Geopolitical Tensions

The global markets were influenced by a mix of UK political developments, corporate earnings, and geopolitical tensions in recent days.

New Prime Minister Andy Burnham's cabinet reshuffle was seen positively by defence-related companies, as former Defence Secretary John Healey, now Chancellor, has advocated for increased military spending.

The new government also announced an £850 million package to reduce household energy bills this winter through a cut in VAT on electricity from 5% to 0%, which is expected to lower annual electricity bills by around £45 for a typical household.

UK inflation continued to move in the right direction, with CPI falling from 2.8% to 2.6%, marking a third consecutive downside surprise.