One of Europe's most consequential exchanges, the UK's FTSE 100 is continuing to rally in green amid uncertainties around it. The marquee index in the global city of London has been in many ways at odds with the circumstances which it is oriented in.
The Polls That Play The Market
The most recent of all the happenings, being the local elections, which came to pass in the United Kingdom, right before the much anticipated UK General elections.
The recent results open a brighter and clearer purview, of the cataclysmic future awaiting the ruling Rishi Sunak-led Conservative party. According to reports, the party lost more than half of the political territory that it was wielding and therefore defending, as it lost over 430 seats in these local elections. The Labour party on the other hand has made major gains.
The markets appear to reacted to what in all possibility is the downfall of the 'outgoing' government. The FTSE ended the day's trade on 3 May, when the results for most seats were already trickling in, at 8,213.49 points, increasing 0.51 per cent.
FTSE Jumps as Pound Slumps
In previous instances, the FTSE 100 surged when the local currency, the Pound Sterling slumped. As of 5 May, the Pound Sterling stands at 1.25 against the US Dollar. In fact, it was in that period, that the index reached its all-time high mark. It needs to be noted, that this 'equity summit' was achieved when inflation data for the country improved. In addition, the markets did well, even though some data showing underwhelming prospects for the economy emerged earlier this year.
According to reports, the party lost more than half of the political territory that it was wielding and therefore defending, as it lost over 430 seats in these local elections. | AFP
According to recent numbers, the likes of PHOENIX GROUP HOLDINGS and BERKELEY GROUP HOLDINGS have made significant gains, as the companies soared 6.45 per cent and 4.96 per cent, respectively.
This also is correlated to how many corporations, that formerly supported the Conservatives are looking to the left, to the Conservative's rival, the Labour party. This could also be seen as a nod to the party, that poll after poll is set to win the General Election under Keir Starmer. In the coming trading week, it remains to be seen, as to whether this green streak continues for London's premier exchange.
