Investment - Articles - After Election result the market carries on regardless

 ‘Given the size of the majority for the Labour party, Keir Starmer will be the most powerful leader since Tony Blair. He will be able deliver significant change for the country and push through many reforms. But the election was won for Labour on basically a ‘change’ vote, being the anti-tory vote rather than an enthusiastic endorsement for a labour mandate, which we can see in the vote % rather than the number of seats. In the election campaign we did not see Labour offer a significant shift in major policy areas, especially economic policy. We may look back in 5 years time and recognise the impact of this result had on the UK and the economy but right now we simply don’t know what that will be.’

 ‘This is one of the reasons there has been no reaction in the market since the election was called and none since the election result became clear overnight. It’s difficult to argue much will change in short order, therefore the market carries on regardless.’
 
 ‘One of the legacy’s of Liz Truss, who incidentally lost her seat last night, is that there has been much more attention on the relationship between politics, economic policy and the bond markets not just in the UK but in other countries, no one wants a repeat of that period. But for now, the gilt market will no doubt go back to looking at the latest inflation figures, BoE speeches and following US Treasuries for guidance.’