Now we have the results from the General Election, investors’ first moves will be an indicator for how the country’s financial situation will take shape over the next term. The Guardian took a look at the key indicators highlighted by Ian Stewart, the chief UK economist for Deloitte.
Here’s a summary of the key things to watch as listed in The Guardian:
Over the past year, financial markets have lowered their expectations for interest rates. Stewart notes that should ‘the general election usher in sustained political uncertainty’ then these rates will continue to fall. Should the Conservative government decide to boost the economy through increased public spending, then the rate expectations will likely rise.
Similar to above – mortgage rates are predicted to move, this would differ depending on the election outcome.
Analysts have voiced fears that an inconclusive outcome in the election could knock confidence in the FTSE 100. Had a Labour government been elected (or Labour-led coalition), pressure may have on shares in banks, bookmakers and energy companies. On the other hand, the prospect of an EU referendum under the Conservatives could ‘knock back the whole index.’
Had the election delivered no clear winner, the foreign exchange market for sterling may have become uncertain. A period of deal-making could have arisen while parties built alliances, which would have perhaps caused volatility in this measure.
All images taken from The Guardian article "Election aftermath: five key market indicators to watch"