U.K. domestic stocks rise most this year on Labour election win
BNN Bloomberg
Shares exposed to the British domestic economy saw their best gains of the year, as the Labour Party’s landslide election victory spurred hopes that political stability could support a potential rebound in economic growth.
The domestic-heavy FTSE 250 Index rose as much as 1.8 per cent, the biggest intraday gain since Dec. 14, before trimming the rally. The FTSE 100 added 0.5 per cent, with the best-performing U.K. sectors including property, financials, retail and defense. That helped the Stoxx Europe 600 Index advance 0.5 per cent.
With the last results to come, Keir Starmer’s Labour took 411 of the 650 seats in the House of Commons, the most since Tony Blair’s 1997 win.
“Overall, the picture is one of stability,” said Georgina Hamilton, a portfolio manager at Polar Capital. “There’s potential for a more constructive relationship with the EU, which could unlock some business investment that has lagged since Brexit,” she said.
