Labour Party Wins UK Elections By A Landslide; Know How Markets In World's Financial Capital-London Reacted

2024 is like no other year for democracy, as billions around the globe have either already exercised their right to vote or are gearing up to do the same in the coming days and weeks. The United Kingdom was one of the major names, that were slated to go to the polls on July 4.

Labour Party Wins Elections

The results did not come as a surprise to most, who have been bombarded with polls showing a cataclysmic defeat to the incumbent Conservatives, led by now-former PM Rishi Sunak. The Labour Party, under the leadership of Keir Starmer, swept the polls with the most number of seats, staking up 411 seats in the 650-member House of Commons.

On July 4, the markets in what is deemed the financial capital of the world, London, reacted to the developments with a noticeable surge.

The British marquee index, FTSE 100, which closed at 8,173.29, woke up with an increase of 83.26 points, jumping to 8,256.55 on the day of voting. It, however, closed slightly lower at 8,239.99 points.

On Friday, July 5, the last day of the trading week, the markets travelled further, reaching 8,268.72 in the early hours of the day's trade on Friday.

After the PM was appointed, the new government also appointed the new Chancellor of Exchequer (Finance Minister). Rachel Reeves, through her appointment, Reeves became the first-ever woman to hold the prestigious and consequential position.

Major Banking Shares Slump

The markets, after the surge, declined by 0.45 per cent or 37.33 points, to close at 8,203.93 at the end of the day's trade on July 5. SMURFIT KAPPA GROUP was the top leader with a 3.51 per cent jump in value.

It was followed by UNITED UTILITIES GROUP, with a 3.45 per cent. VISTRY GROUP also raked in a surge of over 3 per cent with a jump of 3.42 per cent.

Interestingly, some big names ended the day in red. With banking behemoth HSBC HOLDINGS dropping by 2.56 per cent. Another banking giant, STANDARD CHARTERED lost 2.19 per cent. Barclays also joined the losers line with a decline of 1.69 per cent.

The British Pound also saw a slight decline in its value. The pound closed at 1.28 against the US dollar.