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Sterling, stocks jump after Johnson wins big in UK

Credit: Reuters Studio
Published on December 13, 2019 - Duration: 01:20s

Sterling, stocks jump after Johnson wins big in UK

Sterling and UK stocks both gained Friday after a big win for Boris Johnson's Conservatives in the country's general election, with investors betting that means a quick and orderly Brexit.

Julian Satterthwaite reports.

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Sterling, stocks jump after Johnson wins big in UK

Boris Johnson swept back into Downing Street on Friday (December 13) morning.

The Conservative Party leader returned as Prime Minister after a sweeping win in the UK general election.

And the reaction on markets was clear.

By early Friday Sterling was up about 2 percent against the dollar.

Against the euro it hit levels not seen since shortly after the 2016 Brexit referendum.

Investors welcomed a result that seems to promise a quick, orderly Brexit after years of political gridlock.

Stocks too gained.

London's benchmark FTSE index was up around one percent out of the gate.

The UK election result came on top of an already buoyant mood for markets.

That after Reuters reports of a U.S.-China trade deal.

Sources say Washington will cut tariffs on some Chinese goods as part of a first-phase agreement.

Stocks rose around 2.5% in Japan and Hong Kong following the news.

While perceived safe havens like U.S. government bonds headed the other way.

Back in the UK attention now turns to post-Brexit trade talks with the EU.

How they proceed may determine whether the upswing for UK assets can last.

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