Markets welcome reduced political risk premium on UK assets after Labour win

Domestic stocks and sterling inch higher

Valeria Martinez
clock • 3 min read

The Labour Party’s landslide general election win has been met with a calm response by the financial markets, with the outcome expected to reduce the political uncertainty risk that has dogged UK assets since Brexit.

Keir Starmer has been formally appointed as prime minister by King Charles III after his party secured 412 of the 650 seats in the House of Commons, while the Conservatives fell to 121. The Liberal Democrats gained 71 seats, and both Reform UK and the Green Party picked up four seats each. London's blue-chip index FTSE 100 has climbed 0.2% so far today following Labour's victory, while the domestically-focused FTSE 250 is up 1%, according to MarketWatch.  Sterling edged up 0.1% to $1.278 against the dollar and reached €1.18 against the Euro. These gains reflect growing investor confid...

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