Labour majority not enough to make UK preferred market over US

Removes ‘potential barrier’ for global investors

Labour’s landslide win at the UK general election has helped remove some sentiment barriers for global managers looking to invest in the FTSE, but it has not been enough to turn the tide in the market’s overall popularity.

Keir Starmer's party successfully took 411 out of a possible 650 seats, a sizeable majority experts said could be the beginning of a period of "stability" for the UK. Now on its fourth prime minister in five years, the UK was tarred by a heightened risk premium on assets, catalysed by the 2016 Referendum vote to leave the EU, which progressively escalated and reached a peak following Liz Truss' Mini Budget. This manifested into serial underinvestment in the UK during that eight year period, which was heightened by the lack of technology companies in the FTSE at a time when investors w...