Laura Foll, a Portfolio Manager on the Global Equity Income Team, outlines the initial reaction of markets to the clear Conservative majority in the UK election. She also looks at two key longer-term implications for investors in the UK equity market.
- The UK election result may drive a rise in consumer confidence and the removal of nationalization risk for certain sectors in the UK.
- The result may also lead international asset allocators to reassess their allocations to UK equities and potentially reverse markedly negative flows since 2016.
- In our view, there is now increased potential for UK takeover activity, as the election removed some risk associated with the UK equity market.
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