Shares and sterling are rallying as the financial markets react to the Conservative Party’s election triumph
- Latest: FTSE 100 and 250 surged today
- Biggest trading volumes since 2017
- Housebuilders, utilities and banks rally
- Chancellor Javid promises ‘deal dividend’ for economy
- Billionaires’ wealth surges today
- Introduction: It’s Blue Friday in the City
Sterling is ending the day with solid gains, although it’s not quite as rampant as 12 hours ago when this blog started.
Against the US dollar, the pound is worth $1.334, its highest level since March, and very nearly an 18-month high.
The clear majority that Boris Johnson achieved could give him more scope for getting an extension to the transition period agreed to. He would no longer be so dependent on the hard-line Brexiters and European Research Group. However, there is also the risk that Boris Johnson won’t want to extend the transition period given that his motto was “get Brexit done” and with such a solid majority he has a clear mandate to do just that.
Until we get further clarity on the transition period, the pound might struggle to advance beyond $1.35 in the short term. The start of the first half of 2020 could still see considerable uncertainty.