London’s stock market and the pound saw gains against the dollar on Thursday as Britons participated in a general election expected to favor the centre-left Labour party as the main opposition.
Eurozone stocks also rose amid efforts to prevent the far-right National Rally (RN) from gaining ground in France’s upcoming legislative poll on Sunday.
Trading activity was tempered with Wall Street closed for the Independence Day holiday in the United States.
In the UK, Prime Minister Rishi Sunak’s Conservative party is anticipated to face a significant defeat, potentially ending their 14-year rule.
“Today’s UK election is unlikely to cause major shocks, with expectations high for a decisive Labour party victory. Markets are optimistic about potential changes in Downing Street,” commented Joshua Mahony, analyst at Scope Markets.
Amidst UK company news, shares in British medical equipment maker Smith & Nephew surged seven percent following Swedish activist investor Cevian’s acquisition of a five-percent stake. Barclays also gained after announcing the sale of its German consumer finance arm to Austrian peer BAWAG.
Meanwhile, elections across Europe remained a focal point, particularly in France. The euro received a boost as centrist and left-wing candidates withdrew ahead of the runoff, aiming to consolidate support against the RN.
Investor sentiment was buoyed as softer US labor market data hinted at possible Federal Reserve interest rate cuts, with a crucial jobs report awaited on Friday.
– Key figures around 1100 GMT –
London – FTSE 100: UP 0.8 percent at 8,239.11 points
Paris – CAC 40: UP 0.8 percent at 7,692.57
Frankfurt – DAX: UP 0.4 percent at 18,442.61
EURO STOXX 50: UP 0.5 percent at 4,988.61
Tokyo – Nikkei 225: UP 0.8 percent at 40,913.65 (close)
Hong Kong – Hang Seng Index: UP 0.3 percent at 18,028.28 (close)
Shanghai – Composite: DOWN 0.8 percent at 2,957.57 (close)
New York – Dow: DOWN 0.1 percent at 39,308.00 (close)
Euro/dollar: UP at $1.0803 from $1.0786 on Wednesday
Pound/dollar: UP at $1.2760 from $1.2737
Dollar/yen: DOWN at 161.09 yen from 161.52 yen
Euro/pound: UNCHANGED at 84.65 pence
West Texas Intermediate: DOWN 0.6 percent at $83.39 per barrel
Brent North Sea Crude: DOWN 0.4 percent at $87.02 per barrel
