Financial markets seem to have welcomed the news that Rishi Sunak will be the next UK Prime Minister.

The pound rose 0.15% against the US dollar after Sir Graham Brady, chairman of the 1922 committee, said only one valid nomination had been received for the next leader of the Conservative Party and the country’s next prime minister.

However, it was still down about 0.2% on the day.

The FTSE 100 was up just over 0.6%, while the more domestically focused FTSE 250 was up 1.25% on the day.

When government bonds opened for trading this morning, they quickly rose as it became clear that Mr. Sunak was likely to face a tight race for the top job. The interest rate on these bonds fell sharply.

Mr Sunak, who was chancellor under Boris Johnson, will be seen by markets as a more cautious pair of hands.

During the last leadership campaign, he warned that Liz Truss’ plans to cut taxes were reckless and would lead to economic problems, and he was right.