The FTSE 100 has rallied following the Labour Party’s historic landslide victory in yesterday’s General Election.
Currently, the index stands 21 points higher at 8262.26, reflecting an election result that was fully priced in by financial markets.
Among individual stocks, Persimmon is 25p higher at 1457p with NatWest up at 327.1p and British Gas owner Centrica ahead by 0.9p to 141.3p.
Furthermore, the British pound has lifted against the US dollar and Euro with sterling jumping 0.1 per cent to $1.278, which is the highest it’s been since the middle of June.
This was up 0.01 per cent at €1.180 euros as the global markets woke up to Sir Keir Starmer’s party returning to Number 10 Downing Street.
Overall, the pound has held steady in overnight trading after initial exit polls gave an indication as to the extent of Labour’s lead.
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The pound has jumped against the dollar and euro
GETTY
Many analysts had already priced in a massive victory from the party into the financial markets.
Prior to markets opening, traders had expected the FTSE 100 index to edge higher.
Reacting to his win, Starmer claimed that change “begins now” in an “age of national renewal” while speaking to members of the eletorate.
The country’s new Prime Minister elect asserted the Labour Party will “start to rebuild our country”.
Housebuilding stocks rallied in particular in reaction to the Labour Party’s historic win.
Richard Hunter, head of markets at Interactive Investor, outlined why this may be the case.
He explained: “One sector set to benefit from the new political regime is housebuilding, which has seen some recent strength on hopes of reforms, less red tape in terms of planning and more supply.”
Hunter noted that the FTSE 100 is currently ahead by seven per cent for this year.
Keir Starmer has won a landslide victory for the Labour Party
PA
