Investors were also concerned about the EU's economy, after German inflation soared to 10.9% year-on-year in September, above expectations of 10.2%. However, new data published today showed France's inflation eased for the second straight month.

The FTSE 100 was up 1% this morning, ahead of talks between Liz Truss, Kwasi Kwarteng and the head of the UK’s Budget watchdog, Richard Hughes.

There was some good news as new revised data from the Office for National Statistics revealed that the UK economy did not shrink in the second quarter, and so is not technically in recession.

GDP grew by 0.2%, after a drop of 0.1% in Q1. The pound gained ground against the dollar, to $1.11.

 

Things to read today:

Sterling nearly erases losses from Kwasi Kwarteng’s ‘mini’ Budget (Financial Times)

Italy Has Flirted With Loose Fiscal Policy. Why It Won’t Melt Down Like the U.K. (Barron's)

UK Is the Only G-7 Economy Still Smaller Than Its Pre-Covid Size (Bloomberg)