By Anviksha Patel
The markets have ticked upwards on Thursday afternoon in London, trading off the back of the new U.K Prime Minister Liz Truss’s unveiling of an energy support package, which will cap average household bills at £2,500 for the next two years.
Meanwhile, the pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.0753% against the dollar rose to $1.1536 after the announcement. It had been trading at $1.1500 in the lead up to Truss’s speech in U.K Parliament.
The pound had dropped earlier this week to 37-year lows.
The yield on the U.K. 10-year gilt /zigman2/quotes/211347177/realtime BX:TMBMKGB-10Y -0.93% eased to 3.03%, moving off recent 11-year highs. Yields move in the opposite direction to prices.
Truss did not put a cost figure on the intervention, saying Chancellor Kwasi Kwarteng will later identify how much it will cost. Several outlets have estimated the figure will supersede £100 billion.
Truss also, as expected, said it will end a ban on fracking as she also announced a new round of licensing for the North Sea.
The U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.51% edged into positive territory with a slight gain. The midcap FTSE 250 /zigman2/quotes/210598417/delayed UK:MCX -0.55% , which is more sensitive to domestic economy, was a touch weaker.