In this video, Laura Foll, UK equities portfolio manager, outlines the initial reaction of markets to the clear Conservative majority in the UK election. She also looks at the two key longer-term implications for investors in the UK equity market.
- The result may drive a rise in consumer confidence and the removal of nationalisation risk for certain sectors
- The result may lead international asset allocators to reassess their allocations to UK plc and potentially reverse markedly negative flows since 2016
- There is now increased potential for UK takeover activity with the election result removing some of the risk associated with the UK equity market