UK Labour's Historic Win Fuels Modest Gains in U.K. Markets, Sterling
By Cristina Gallardo
British stocks and the pound made moderate gains early Friday following the widely anticipated Labour party's landslide electoral victory, as markets welcomed the prospects of more stability.
The FTSE 100 index in London rose 0.36% in early trade Friday, while the more domestically focused FTSE 250 rose 1.2%.
The pound strengthened 0.1% to 1.2775 against the dollar, while the euro is flat at 0.8474 versus sterling in early Friday trading.
The 10-year gilt fell 3 basis points to 4.171% following the election result.
U.K. housebuilders made strong gains and lead the FTSE 100 index risers, fuelled by Labour's target to build 1.5 million homes within the next five years, with Barratt Developments shares going up 2.7%, Taylor Wimpey shares growing 2.4%, and Berkeley Group shares rising 1.1% in early trade.
Bank stocks meanwhile grew more timidly, with NatWest shares going up 0.5%, and Barclays's rising just 0.3% in early trade. Asia-focused banking giant HSBC shares in London fell 1.1%.
With six constituencies still to declare, Keir Starmer's Labour Party had won 410 seats of a total 650 in the U.K. parliament. The Conservative Party, which ruled the U.K. for the past 14 years, came second with 119 seats.
The centrist pro-European Union Liberal Democrat party made strong gains, achieving 71 seats, while the Scottish National Party obtained nine seats, down from 48 in 2019. The far-right Reform UK party led by eurosceptic Nigel Farage entered parliament with four seats, with 37 seats going to other parties.
Write to Cristina Gallardo at cristina.gallardo@wsj.com
Corrections & Amplifications
This story was corrected at 0939 GMT.The original misstated the number of seats the Scottish National Party won in the 2019 U.K. general election as 38. The party won 48 seats.
(END) Dow Jones Newswires
July 05, 2024 04:00 ET (08:00 GMT)
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