Insights

Weekly Market Commentary – 4th July

7 July 2025

This week Rachel Reeves’ employment prospects delivered a reminder of just how unsettled financial markets are. The chancellor appeared visibly upset by the lukewarm support offered by the prime minister after the government was forced into an embarrassing U-turn on welfare reform. The fact that a tearful few minutes in Parliament were enough to cause sterling and gilts to fall show investors remain sensitive to any suggestion the UK government could go on an unfunded spending spree.