British Election Results And Focus On GrowthBoris Johnson’s conservative party won an absolute majority in the British Parliament. There will be no second referendum on Brexit, and after years of political chaos, investors have a clearer picture of the future.
The leader of Tory will withdraw Britain from the EU in the near future. It remains to be seen how this will happen. By the end of 2020, Johnson will need to conclude a trade deal with the EU. The Conservative leader wants access to the single market of the European Union in exchange for some independence and will have to fight against opponents of this approach within his own party.
On the news of Johnson’s victory, the pound has shown its best daily dynamics over the past few decades. The British currency surpassed its 19-month high at $1.3516 and also showed the highest levels against the euro since the Brexit referendum in 2016. Currency traders thus celebrated the prospect of an end to the political deadlock, which in the long run will have to return investment to the country and stop the economic slowdown. The exit polls showed that Johnson’s party will win 368 seats in Parliament, on which Boris was congratulated by Trump. Citizens did not support Labour with their plans for a second referendum and socialist reforms.
In addition to relief from Johnson’s victory, the good news surrounding the trade deal led to an increase in Wall Street. According to new data from Bloomberg News, Trump will sign the first phase of the deal, refusing to introduce a new portion of tariffs against Chinese goods worth $160 billion on Sunday. According to Reuters, China, in turn, approved the purchase of American agricultural products worth $50 billion in 2020. All this has led to a jump in the growth of stocks around the world. It is expected that the stocks of trade-related companies will grow especially actively.
Thus, the end of the working week is quite successful for the global market. Participants were laying down more negative scenarios, so now there is room for growth.