Stocks are fizzing as Conservatives bring out the champagne
Fiona Cincotta December 13, 2019 10:00 AM
It is Friday the 13th and the UK election results are out. As Boris Johnson is cracking open the champagne the FTSE has rallied 1.6% and the pound is seeing a spectacular bounce against the dollar, up 1.92%.
Shares with a high UK domestic exposure such as homebuilders, utilities and banks are clocking impressive increases: Persimmon, Barratt Developments, Berkley Group and Taylor Wimpey have all gained more than 10% since opening on relief that after three years the Brexit uncertainty will come to an end and provide both businesses and consumers with the possiblity to plan ahead again.
Pound rallies to highest level in 18 months
As the first estimates of voting results started to come in during the night the pound rocketed up to 1.3513 against the dollar. It has slipped a few pips since then, indicating that for the moment 1.35 may be the ceiling, it is still trading comfortably above 1.34.
Global markets rally on prospect of China deal
European markets and US stock futures also have a bounce in their step this morning after President Trump tweeted that the US and China are close to agreeing a “big deal” that would make it possible to avoid new tariffs which are due on 15 December. Chinese negotiators offered only a lukewarm comment, neither confirming nor denying that the two sides have managed to agree on some trade issues, but the markets have run with the news and rallied.
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