Fri. Sep 25th, 2020

FTSE 250 rockets to record high as banks, housebuilders and utilities surge – business live

Shares and sterling are rallying as the financial markets react to the Conservative Party’s election triumph

10.59am GMT

The economic and financial reaction to Johnson’s win could mirror Donald Trump’s success three years ago, suggests Tristan Hanson, multi-asset fund manager at M&G Investments:

A surge in UK business confidence may well be the outcome, as occurred in America following President Trump’s surprise election victory. Combined with looser fiscal policy, the UK economy may enjoy a period of much better growth than experienced in recent years.

The election result is therefore likely to be positive for sterling and UK equities, while UK gilts look very unattractive by comparison and vulnerable to any upward reassessment of the long-run outlook for UK interest rates. Certain European equities, notably banks, are also likely to benefit, as UK political uncertainty has weighed on performance in recent times.

10.48am GMT

The FTSE 100 is continuing to climb, and is now up 132 points or 1.8% at 7,405. That’s a two-week high.

The top four shares are all house-builders, with Taylor Wimpey, Berkeley Group, Barratt Development and Persimmon gaining at least 11%.

Retailers and Housebuilders that generate revenues based on UK demand and have non-sterling import costs are seeing a surge in early trading as the outlook for both their revenues and costs improve

Continue reading…Shares and sterling are rallying as the financial markets react to the Conservative Party’s election triumphLatest: UK stock market jumpsFTSE 250 hits all-time highIntroduction: It’s Blue Friday in the CitySterling hits 18-month high vs US dollarThe mood on the trading floor 10.59am GMTThe economic and financial reaction to Johnson’s win could mirror Donald Trump’s success three years ago, suggests Tristan Hanson, multi-asset fund manager at M&G Investments:A surge in UK business confidence may well be the outcome, as occurred in America following President Trump’s surprise election victory. Combined with looser fiscal policy, the UK economy may enjoy a period of much better growth than experienced in recent years.The election result is therefore likely to be positive for sterling and UK equities, while UK gilts look very unattractive by comparison and vulnerable to any upward reassessment of the long-run outlook for UK interest rates. Certain European equities, notably banks, are also likely to benefit, as UK political uncertainty has weighed on performance in recent times. 10.48am GMTThe FTSE 100 is continuing to climb, and is now up 132 points or 1.8% at 7,405. That’s a two-week high.The top four shares are all house-builders, with Taylor Wimpey, Berkeley Group, Barratt Development and Persimmon gaining at least 11%.Retailers and Housebuilders that generate revenues based on UK demand and have non-sterling import costs are seeing a surge in early trading as the outlook for both their revenues and costs improve Continue reading…

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