JP Morgan says a Labour win in the UK election would be a net positive for UK markets:
- Labour party is occupying a centrist platform
- perception of policy paralysis is set to move behind us
- Labour agenda is modestly pro-growth
- with a likely cautious fiscal approach
Much of the note is picking apart impacts on various sectors of the economy, but more broadly JPM note that since 1970 a Conservative election win sees an average 1% gain in a month for the UK stockmarkrt, while a Labour win sees an average 2% fall. But, this time:
- “a Labour win will likely be seen as a positive for the UK market”
The contenders, Sunak and Starmer. The election is on July 4.
This article was written by Eamonn Sheridan at www.forexlive.com.
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