General Election Summary: “stalemate, dither and indecision”
The part of the electorate that wanted a hung parliament might be happy but the smiles won’t last long…
Although rating agencies Moody’s and Standand & Poor’s say the UK’s long-term sovereign rating remains AAA for the time being, the market news isn’t positive.
The pound dropped to $1.4649, its lowest in a year, and weakened to 86.34 pence per euro in early European trade.
Futures on the FTSE 100 were down 2.7 per cent.
June gilt futures fell 54 ticks to 116.75, having scaled a contract high of 118.51 within the first hour of a specially extended trading session.
And here’s how one Bloomberg commentator summed it up:
The stock markets are slumping. Athens is in flames. The vultures of the bond market are circling. And what does one of the most heavily indebted of the major industrial economies vote for? Stalemate, dither and indecision.
Not a resounding endorsement.
