UK Becomes Safe Haven for Investors Spooked by France Chaos
- Expected stability after election boosts demand for UK assets
- Gilt-market performance contrasts with French spread blowout
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As the UK prepares to head to the polls on Thursday, the country’s financial markets appear to be shedding their recent reputation for volatility.
British stocks are near a record high, bond fluctuations have evaporated, and hedging against pound weakness is at a seven-year low. That marks a rethink by investors who imposed penalties on the country’s assets following the 2016 decision to leave the European Union and then Liz Truss’s disastrous premiership of 2022.