Pound jumps on UK tax cut reversal, oil swings higher

Oil jumped on Monday as OPEC+ considered reducing output at its meeting later this week while the pound swung higher after the UK government said it would reverse a controversial tax cut that had roiled British markets, Reuters reported.
Asian stocks mostly fell in holiday-thinned trade although Japanese markets found support on strong energy and semiconductor shares.
Sterling jumped in early London trade after the British government announced plans to reverse the proposed scrapping of the higher rate of income tax that has sparked a backlash in the governing Conservative Party.
The pound rose as far as $1.128, its highest in 10 days, while FTSE futures hinted at a strong recovery in a stock market that has been battered by concerns over Prime Minister Liz Truss and her finance minister Kwasi Kwarteng’s spending plans.
“From a market perspective, it is a good step in the right direction. It will take time for markets to buy the message but it should ease the pressure,” said Jan Von Gerich, chief analyst at Nordea.