British vote sparks market uncertainty

– Financial markets dislike uncertainty but were handed a hugely clouded outlook yesterday after the Conservative party of Prime Minister Theresa May lost its parliamentary majority in Britain’s snap general election.

Traders and analysts in the City of London financial district spoke about feeling jaded, not just because they were up all night awaiting the results but because the UK’s second shock election result in a year throws the nature of Brexit talks into yet more doubt.

For the wider British economy, yesterday’s result refocuses attention on the uncertain path lying ahead for London’s key financial sector as well as for businesses generally with close EU links.

“This is a serious moment for the UK economy,” Carolyn Fairbairn, director-general of Britain’s main business lobby group the CBI, said following the election outcome.

“The priority must be for politicians to get their house in order and form a functioning government, reassure the markets and protect our resilient economy,” she said in a statement.

“Politicians must act responsibly, putting the interests of the country first and showing the world that the UK remains a safe destination for business,” she added.

The initial reaction to the general election result has been to send the pound plunging. – AFP