The UK Prime Minister publicly supports the Treasury Secretary to remain in office to resolve the crisis, and the stock, bond, and currency markets all rebound in response to the Prime Minister's statement.

The UK stock market saw a significant rebound from selling pressure on Thursday, with Prime Minister Keir Starmer's steadfast support for Chancellor of the Exchequer Rishi Sunak becoming the key to restoring market confidence. After Starmer publicly stated for two consecutive days that he was "completely in sync with Sunak," investors' expectations of political stability significantly improved, driving the domestic economic benchmark, the FTSE 250 index, up by 0.5%. The bond market also released positive signals: the yield on 30-year UK bonds fell by 12 basis points to 5.30%, completely reversing the 19 basis point increase caused by political uncertainty on Wednesday (the largest single-day fluctuation since April). The yield on 10-year UK bonds also fell by 9 basis points to 4.52%, reversing the 16 basis point increase from the previous day. The reaction in the foreign exchange market was relatively moderate, with the pound rising by 0.2% to $1.3656 from a 0.8% drop the day before. Henry Allen, macro strategist at Deutsche Bank, pointed out that the Prime Minister's consecutive statements directly alleviated concerns in the market about cabinet turmoil. The timeline of events shows that Starmer first emphasized being "completely in sync with Sunak" in an interview on Wednesday evening, reiterated this stance in a radio interview the following day, and planned to attend an NHS healthcare reform event at 10:30 am London time on the same day. The political turmoil began during a parliamentary questioning session, when asked if he could ensure Sunak's position, Starmer's response escalated from "full support" to a clear commitment of "joint decision making," effectively quelling doubts about policy continuity in the market. Market observers point out that this volatility highlights the high sensitivity of UK assets to political stability. Although bond yields remain elevated (30-year UK bond yields have risen by 120 basis points since the beginning of the year), short-term volatility has been somewhat reduced due to clear political signals. Investors are closely monitoring the details of future fiscal policies to assess the trend of long-term yields and the attractiveness of pound assets.