The UK’s general election on July 4 now looks like it will almost certainly lead to a victory for the left-leaning Labour Party. Bookmakers are giving Labour a 90% probability of winning a majority. While the polls suggest a significant political change, analysts doubt whether the outcome will dramatically alter the economy.
The pound strengthened in recent days after EUR/GBP failed to take out 0.85 earlier this week. Anything but a (possibly record-breaking) landslide Labour victory would be a huge surprise.
Brits are heading to the polls today aiming to oust the Conservatives from power after 14-years. A Labour win is seen as a net positive for both the British stock markets and sterling.
There are two elections that stand out and match the current setup. In 1997, the Labour Party under Tony Blair managed to reclaim the government after 18 years of Conservative dominance. Similarly, in 2010, the Tories returned to power, winning four consecutive elections and staying in charge until July 4, 2024. So, what happened to the key market assets before and after these elections?
