Markets rise as businesses clamor for an end to uncertainty under a new prime minister

After weeks of chaos following Prime Minister Liz Truss’s mini-budget and months of uncertainty under her predecessor, businesses need more confidence in energy support and help to find workers, as well as boosting international trade and exports. British Chambers of Commerce and Industry said.

“The political and economic uncertainty of the past few months has caused huge damage to the confidence of British businesses and this must now be brought to an end,” said CEO Shevan Haviland.

“The new prime minister must have a firm hand on the rupee to see the economy through the challenging environment ahead.”

Markets had already largely anticipated Sunac’s victory before it was officially announced on Monday afternoon.

It was a rollercoaster day in the markets.

Actions London’s FTSE 100 index of the largest companies initially rose by as much as half a percent before falling by almost 0.8%.

The FTSE recovered again in the afternoon, up 0.64% to 7,013 points. The pound initially fell against the dollar after the confirmation before a volatile period began and eventually ended in the red.

At the closing of the markets in Londonone pound could buy $1.129, down slightly on the day.

The interest rate the government pays on its 30-year notes fell 0.2 percentage point to 3.8% that day and was largely unaffected by Mr Sunak’s confirmation of appointment.

In the end Mr Sunak was the only candidate left for the post after Penny Mordaunt dropped out and Boris Johnson never declared his candidacy.

Now he will face an entire inbox of inquiries from businesses and sectors across the country.

Kate Nicholls, boss of the British Hospitality Trade Organisation, said “stable political leadership is essential” and that the organization worked “very closely” with Mr Sunak when he was chancellor.

She added: “I would encourage him to extend business rate relief, reform the whole business rates system in the long term and reduce the current rate of VAT.”

But environmental campaigns have warned the new leader that he must avoid supporting certain types of business if he wants to help cut emissions.

“Rishi Sunak has promised to meet the government’s climate targets,” said Kyra Box, a campaigner at Friends of the Earth.

“Nonetheless, his record as chancellor, which has seen new North Sea oil and gas production sped up, domestic flight charges cut and a weak tax on fossil fuel windfalls introduced, suggests the opposite.

“He also backed fracking with community consent during the summer leadership race, but that proved to be the final nail in the coffin of Liz Truss’ premiership.”