The pound rose as the UK withdrew a plan to abolish the top income-tax rate.
Global markets are in jitters over the impact of monetary tightening on the economy after central banks including the Federal Reserve reiterated their resolve to contain runaway inflation. U.S. stocks posted their third straight quarter of losses for the first time since 2009 since the Federal Reserve delivered a third jumbo hike last month. Traders now await US jobs data later this week to gauge the path of the economy and Fed policy.
The pound and shares of Credit Suisse were in focus in European trading. The British currency rallied after UK Chancellor of Exchequer Kwasi Kwarteng withdrew a proposal to abolish the top 45 per cent tax rate. Credit Suisse fell 9 per cent in Zurich even after Chief Executive Officer Ulrich Koerner asserted the bank has a strong capital base. Speculation about the company’s future and its requirement for fresh capital continued to mount.