General Election 2019: Results round-up

TL;DR

The Conservative Party's victory in the general election brings certainty to Brexit and boosts UK markets.

Transcript

no prizes for guessing the outcome of this general election despite being billed as the most unpredictable in living memory most survey showed the Tories would win a majority and they did the increased certainty around brexit that this election result brings is exactly what the city has wanted since the referendum in 2016 businesses have not invest... Read More

Key Insights

• ❓ Many surveys accurately predicted a Conservative Party majority in the general election, bringing a sense of certainty to the Brexit process.
• 🙈 The UK stock market, particularly UK-focused companies, saw significant gains after the election, indicating investor confidence in the post-Brexit future.
• 😃 House builders, banks, utilities, and UK-focused investment trusts were among the biggest beneficiaries of the election results.

Questions & Answers

Q: How did the election results provide certainty for Brexit?

The Conservative Party's victory means that Prime Minister Boris Johnson's Brexit deal will likely be passed, leading to the UK leaving the EU by the end of January 2020. This clarity on the future relationship with the EU is beneficial for businesses and investors.

Q: What sectors of the UK stock market saw significant gains after the election?

House builders, such as Taylor Wimpey and Persimmon, experienced substantial increases in their stock prices. Banks, utilities, and UK-focused investment trusts also saw positive gains, indicating investor confidence in the post-election market.

Q: Why did the FTSE 250 index perform particularly well after the election?

The FTSE 250 index mainly consists of companies that earn most, if not all, of their revenue within the UK. With the increased certainty around Brexit and the Conservative Party's promise of investment in the country, these companies saw a surge in stock prices, reflecting optimism about the future.

Q: Are there any potential challenges that the UK still faces in 2020?

Yes, despite the election results, there are still significant hurdles ahead, such as negotiating the future trade relationship with the EU. The sizeable majority obtained by the Conservative Party, however, should provide a functioning Parliament that can effectively address these challenges.

Summary & Key Takeaways

• Despite being billed as unpredictable, most surveys predicted a Conservative Party majority in the election, which was confirmed.

• The increased certainty around Brexit that this result brings is welcomed by businesses and investors, who have been holding cash until now.

• The UK stock market, particularly the FTSE 250 index, surged after the election, with house builders, banks, utilities, and UK-focused investment trusts among the biggest beneficiaries.