Stock Traders Prepare Game Plan for Biggest Shakeup Since Brexit
- Historically, equities outperform after Labour victory: Citi
- Election seen boosting sentiment further for rallying stocks
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The earlier-than-expected UK election is prompting traders to prepare for the country’s biggest political shakeup since Brexit, despite the mostly muted market reaction since the announcement was made.
Market strategists are gaming out election scenarios, with history showing UK equities trading relatively flat, or lower, during the first six months after wins for the ruling Conservatives. By contrast, stocks have historically strengthened about 6% following victories by the poll-leading Labour party, according to Citigroup Inc. strategists led by Beata Manthey.