Shares on the London stock market have risen sharply, led by banks and property firms.<\/p>\n
The FTSE 100 gained more than 1.4% in early trading, as investors digested UK election results suggesting David Cameron will remain as prime minister.<\/p>\n
Meanwhile, the pound jumped nearly 2% to $1.55 against the dollar, before pulling back.<\/p>\n
Relief rally<\/p>\n
Experts say bank shares are enjoying a relief rally, as investors welcome news that the election outcome is likely to be clearer than expected.<\/p>\n
The financial firm UBS wrote in a research note: “It appears that we will avoid weeks of uncertainty and horse-trading as there is the ability for the Conservatives to form a government perhaps relatively quickly.”<\/p>\n
Investors are optimistic that banks will not have to pay further levies under a Conservative government.<\/p>\n
Yields on 10-year government bonds or gilts are climbing sharply as prices fall.<\/p>\n
‘Consistent’ government<\/p>\n
The British pound is trading close to a two-month high against the US dollar.<\/p>\n
Analysts say sterling jumped because the projected result meant the government’s agenda was likely to stay consistent.<\/p>\n
“The market often likes a bit of consistency and stability and if the Conservatives are returned to power – be it as part of a minority government or as part of a coalition again – they will be able to push through a lot of the policies and approaches that they have done over the last five years in parliament,” said Jason Hughes from trading firm CMC Markets.<\/p>\n
However, analysts said the rise could be short-lived as uncertainty over a possible “Brexit” or Britain leaving the European Union affects trading, with a referendum on the UK’s EU membership now likely.<\/p>\n
Bill O’Neill at UBS Wealth Management said: “Sterling will, in our view, be moved by a number of different factors in the coming days and weeks.<\/p>\n
But CMC’s Mr Hughes said that, for now, the “relief” rally that the currency was seeing could gain more momentum during European trading hours.<\/p>\n
“If you look at the uncertainty that has been in play, almost since the start the of year, but certainly from about mid-February onwards, we’ve seen a fair bit of pressure on sterling due to the uncertainty of the political landscape locally,” he said. “So I think we will see that relieving bounce.”
\n–<\/p>\n
Source: BBC<\/p>\n","protected":false},"excerpt":{"rendered":"
Shares on the London stock market have risen sharply, led by banks and property firms. The FTSE 100 gained more than 1.4% in early trading, as investors digested UK election results suggesting David Cameron will remain as prime minister. Meanwhile, the pound jumped nearly 2% to $1.55 against the dollar, before pulling back. Relief rally […]<\/p>\n","protected":false},"author":14,"featured_media":13359,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"footnotes":""},"categories":[19],"tags":[4],"class_list":["post-114640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-st-augustines-college"],"_links":{"self":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/114640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=114640"}],"version-history":[{"count":0,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/114640\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/media\/13359"}],"wp:attachment":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=114640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=114640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=114640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}