Heading into the vote, investors were betting that a victory for Starmer’s center-left platform would mean an end to policy-induced market meltdowns. While Labour’s historic support for higher taxes and trade unions has traditionally put it at odds with markets, this time traders are confident that the spectre of the UK’s gilt crisis two years ago will keep the next government in check.
The pound was steady after an exit poll indicated the UK’s Labour Party will secure its long-predicted landslide election victory, with Keir Starmer set to become Prime Minister on a pledge of greater economic stability.
The currency was little changed around US$1.276 ($1.72), with markets hoping a tumultuous period in British politics is over. The official election exit poll predicted Labour will win 410 of the 650 seats in the House of Commons, the most since Tony Blair’s 1997 landslide.
