Markets don’t like surprises. And the election results, while explosive, are not a surprise – or at least the winner isn’t. Labour has secured a substantial majority, as markets had been expecting the party to do from the start of the election. No surprise this morning means no immediate jitters, as the result was already priced in. Sterling is slightly up, by 0.1 per cent, hovering around $1.28. The FTSE 100 is up 0.4 per cent since markets opened this morning.
Most notably, housebuilding stocks are on the up. The strong speculation that Labour will use its first days in power to announce a planning overhaul has given the market quiet confidence that more homes might get built. Shares for a range of housebuilding companies and developers – including Barratt Developments, Vistry and Taylor Wimpey, and Bellway – are all up by about 2 per cent.
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