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Hung parliament in UK: Investors brace for volatility

Sterling has taken a hit and yields on 10-year gilts initially dipped, but the main FTSE stock index edged higher, recouping early losses, as the UK woke up to anything but a ‘strong and stable’ government.

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Peter Toogood, CIO at Embark Group, summed up the result as “truly disastrous” for the Conservatives and for Theresa May personally.

“A setback for Brexit as we are a long way from a strong and stable government,” he remarked.  

“The pound will take the strain initially but a more redistributive and left-leaning government is a distinct possibility, which is unlikely to be particularly supportive for risk assets.

“We are about to live in interesting times.”

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