Why an Election Disaster is Good for British Stocks: ChartBy
Shares in the largest British companies are poised to become the biggest winners in the U.K. general election. The FTSE 100 rose 0.7 percent Friday morning and is up 18 percent since the Brexit vote in June, thanks largely to the demise of the pound. Companies included in the FTSE 100 Index make most of their money—about 70 percent of sales—from outside the U.K., so they benefit from weaker Sterling. The pound slipped 1.6 percent against the U.S. dollar after exit polls came out Thursday evening. Analysts predict that FTSE 100 company earnings will increase 35 percent this year, compared with 11 percent for Euro Stoxx 50 companies.