The pound advanced Friday after Britain’s centre-left Labour Party clinched an expected landslide election victory to end 14 years of right-wing Conservative rule.
London’s benchmark FTSE 100 index gave up early gains made following news that Keir Starmer would become Britain’s new prime minister, after Labour trounced Rishi Sunak’s Conservatives as Wall Street opened.
Labour’s widely forecast triumph has sparked investor hope of economic stability amid easing inflation, although Starmer faces challenges in the form of strained public finances, a stretched state health service, and flagging economic growth.
Senior market analyst at online trading platform, IG, Axel Rudolph, said, “The main beneficiaries of the UK election result were UK house builders which gained around 3 percent on the day while banks and energy companies.”