Britain's new Prime Minister Rishi Sunak walks past Larry the cat outside Downing Street, in London, Britain, October 25, 2022. "The fact that we have Rishi Sunak as prime minister is definitely calming on markets. We believe that it is under owned, it's unloved, undervalued, and there is some upside from here." Sunak in his inaugural speech outside Downing Street on Tuesday stressed the importance of "economic stability and confidence" while warning of "difficult decisions to come." Central to the potential stability narrative, as far as U.K. markets are concerned, is the assumption that the central bank will now be less aggressive in raising interest rates.

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