Markets welcome certainty over new PM.
The FTSE 100 has risen to an 11-month high, spurred by speculation of an interest rate cut on Thursday.The FTSE 100 index closed 1.4%, or 92.2 points, higher at 6,682.8. Bank of England governor Mark Carney hinted recently that fresh stimulus measures could be needed following the Brexit vote. Joshua Mahony, an analyst at IG, said markets thought there was a 75% chance of the key interest rate being reduced from 0.5% to 0.25% this week. The FTSE 100 has now risen by more than 20% since 11 February when fears about the Chinese economy spooked investors, putting the index back in bull market territory. Meanwhile, sterling rose after Andrea Leadsom quit the Conservative Party leadership contest, leaving Home Secretary Theresa May unopposed in the race to succeed Prime Minister David Cameron.