Boris Johnson win spurs the market forward in United Kingdom

0

There have been strong gains observed in the pound as Boris Johnson won convincingly in the elections which took place in the United Kingdom. All of the major stock market indices saw growth on Thursday and the Sterling surged by 2.7% to reach a point of $1.348 after the exit polls had confirmed on Thursday that Boris Johnson is going to have an 86 seat majority. The jump was the greatest it had been since the month of January 2017.

Shortly after, Johnson indeed secured a majority although the numbers have not been declared yet.

This strong majority means that Johnson has the ammunition to get through a Brexit deal in the parliament avoiding the fears of the investors of a no-deal or a Labor government and has now provided the certainty which was needed for very long.

The economist from UBS Dean Turner has said that just as Boris had been seeking the majority desperately, the result has given the market what it had desperately been wishing for that is clarity. If Brexit indeed happens to be completed by January end, he claims that the pound is going to trend very high at a point of 1.35 against the Dollar.

Other economists and analysts have said that the majority has increased at least the chances of transparency coming back to the sector of business and has avoided the threat of a rise in corporation taxes and the utility sector being nationalized.

The markets according to analyst Neil Wilson would have hated the Corbyn government a lot more than they hate uncertainty and the whopping win for conservatives is now a perfect result for the markets.

Leave A Reply

Your email address will not be published.