European stocks pushed higher at the open on Tuesday as traders digest the twist and turns of UK politics and economy, in a sign that market confidence is improving after the government’s U-turn.
In London, the FTSE 100 (^FTSE) jumped 0.9%, the CAC 40 (^FCHI) and the DAX (^GDAXI) rose 1.2% after the opening bell.
It comes as new UK chancellor Jeremy Hunt on Monday reversed most of the mini-budget tax cuts and announced the government will also have to make spending cuts to get debt relative to gross domestic product falling.
Read more: Jeremy Hunt bins disastrous mini-budget and announces changes to energy bill support
Meanwhile, prime minister Liz Truss has apologised for the “mistakes” she has made in her first few volatile weeks on the job, but insisted she will lead the Conservative Party into the next general election.
However, analysts say that the rally is the calm before the storm as economic struggles remain for the UK as the Bank of…
