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General Election 2017: Surging pound takes its toll on the FTSE 100

Laith Khalaf, Senior Analyst, Hargreaves Lansdown said:

“Currency markets have roared their approval for a snap UK election, with the pound enjoying strong gains against the dollar and the euro.

“The fall in the stock market is not a negative response to the UK election per se, rather it is a knock on effect of a surging pound, combined with price falls in some key commodity markets, all of which has taken its toll on the heavyweights of the FTSE 100 index.

“Indeed most major stock market indices are in the red today, with tensions in the far east and the forthcoming French election just two factors contributing to a risk-off environment.

“The EU referendum provides a clear blueprint for why investors shouldn’t shape their portfolios according to proceedings at the ballot box. Not only was the result of the vote a surprise, the effects on financial markets were too, so investors would be best served by keeping politics out of their portfolios.”