Investment - Articles - Fidelity comment on this morning’s General Election results

 Dominic Rossi, Global CIO of Equities at Fidelity Worldwide Investment:

 “Whilst the constitutional issues raised by the election result will cast a shadow over Westminster, markets will be relieved that a likely conservative majority will continue with its fiscal consolidation policies combined with a competitive corporate tax policy. We expect equity markets and the FTSE 100, which surpassed a record high in April, to continue to trend upwards.”

  

 Andrew Wells, Global CIO of Fixed Income at Fidelity Worldwide Investment:

 “On the face of it the swing to the conservative party, and the possibility of a majority, albeit slim, will probably be positive for both Sterling and Gilts. However as the dust settles the change in Scotland will have to be closely followed. Whilst the Scottish Nationalists did not campaign on a ticket of devolution, the magnitude of support for them must herald change in the future, and this will cause greater uncertainty. The other danger is that a slim majority, with no significant coalition could always see us back at the polls in a short period of time and markets will be wary of that situation.”