Stocks and the Pound Rally After UK’s Tax U-turn Injects Some Confidence

Stocks and the Pound Rally After UK’s Tax U-turn Injects Some Confidence
A pile of one pound coins is seen in a photo illustration shot on June 17, 2008. Toby Melville/Illustration/Reuters
Reuters
Updated:

LONDON—Global stocks rallied for a second day on Tuesday, after Britain’s decision to ditch part of a controversial tax-cut plan and slightly paler expectations for aggressive central bank action returned some confidence to investors.

UK Finance Minister Kwasi Kwarteng on Monday announced the government would back down on reversing a tax break for top earners that formed part of a package aimed at boosting growth.