Market Strategists Start Gaming Out UK Election Scenarios
- Jefferies says UK homebuilders and bank are most sensitive
- FTSE 250 tends to outperform after Labour victories, Citi says
Voters at a polling station in Birmingham, England on May 2.
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With the UK election now set, investors are weighing up the possible implications of a new government and looking for ways to trade it.
While the consensus is that a Labor landslide as polls suggest is already priced into markets, Jefferies strategist Mark Braley said UK homebuilder and utilities shares would be among the industries most sensitive if Labour rolls out more expansive economic policies. The FTSE 250 Index of smaller, more domestically focused stocks tends to beat the more international FTSE 100 Index following Labour victories, wrote Citigroup Inc.