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.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
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.