Labour’s victory in UK could further support pound and British stock market with more constructive stance towards EU

reino unido starmer

Renta 4 | In the UK, Thursday’s elections were, in line with expectations, a historic victory for Starmer-led Labour (expected to achieve its largest majority since 1997). The Conservative leader, Sunak has already conceded defeat. Labour’s victory could continue to support the pound and the British stock market in the face of a more constructive stance on the EU and promised fiscal stability.

To this could be added the Bank of England’s next rate cut (the market puts the first cut on 1 August with a probability of more than 60% of -25 bp).

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