FTSE 100 – UK back to vote: will Great Britain give its support to Theresa May’s policy?

FTSE 100 – UK back to vote: will Great Britain give its support to Theresa May’s policy?

6. kesäkuuta 2017

It is a delicate moment for Britain that, on June 8th, will face the electoral process invoked by Prime Minister Theresa May and then negotiate with Brussels to concretize the Brexit scenario at a distance of one year from the popular referendum that has decreed it.

The final race to arrive at the polls will not be, as we could imagine, without difficulties for Conservative Theresa May. Indeed, the latest polls have shown that the May’s party dropped from 15 points ahead a few weeks ago to 13 points last week over her opponent, the Labour leader, Jeremy Corbyn. Sunday Times's YouGov poll even reported that the May’s advantage was reduced to 9 points, for the first time below the 10-point threshold since last September.

At the moment, May's popularity decline is causing some damages to the Sterling, while leaving unchanged the well-diversified London stock index, the FTSE 100. From a technical point of view, the London Stock Exchange index closed the month of May Of the historic highs, above the important psychological level of 7,500 points. While Sterling weakness favors the great majority of listed companies in London, with significant foreign exchange quotas, on the other hand an easing of the post-election political climate could further boost the trend in the British index. However, even if quite unlikely, a rebound in betting on labor which could potentially lead to new volatility waves in financial markets could also be a possible scenario.

5-Year FTSE 100 chart

 

 

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1.3.2021 18:20:48