Global Market: UK's Rachel Reeves defends fiscal record ahead of leadership change; investors eye policy continuity

UK Chancellor Rachel Reeves defended her fiscal record ahead of a leadership transition, with Andy Burnham expected to become Prime Minister around July 20. Burnham has pledged to retain Reeves' fiscal rules and Labour's 2024 tax commitments, which investors view as supportive of policy continuity for UK gilts and the pound. The UK economy continues to face slowing growth and inflation pressures, though it has outperformed European G7 peers since mid-2024.