There has been a positive market reaction to the resignation of Liz Truss after just 44 days in office, following the fierce backlash against her economic plan and humiliating climbdown.
News that the prime minister was to make a Downing Street statement sparked a rally for sterling versus the dollar – leaving the UK currency almost a cent up on the day at one stage at $1.13.
It remained half a cent higher following confirmation she was to leave office.
Shares also moved higher initially on the FTSE 100 and government borrowing costs fell.
The 30-year gilt yield fell back to 3.8% – continuing its recovery since the post mini-budget highs of around 5% that sparked Bank of England intervention.
It took a series of U-turns on the growth plan, initiated by new Chancellor Jeremy Hunt after the sacking of Kwasi Kwarteng, for market damage to ease.
The market reaction signalled a measure of relief that the architect of the Growth Plan – outlined during her campaign for the Tory leadership – was on her way out.
Nevertheless, there was a measure of uncertainty at play given a complete lack of vision on who would replace Ms Truss in Number 10.
It will not be Mr Hunt, leaving him free to continue preparations for the Halloween statement that is to set out the government’s new medium-term fiscal plan.
There will be some jitters over whether its direction is likely to change – or be delayed slightly to allow for the new Tory leader to get their feet under the desk.
Business appealed for a more stable period ahead.
Tony Danker, the director-general of the CBI, said: “The politics of recent weeks have undermined the confidence of people, businesses, markets and global investors in Britain.
“That must now come to an end if we are to avoid yet more harm to households and firms.
“Stability is key. The next Prime Minister will need to act to restore confidence from day one.
“They will need to deliver a credible fiscal plan for the medium term as soon as possible, and a plan for the long-term growth of our economy.”