Financial markets showed stability post the Labour Party’s landslide victory in the UK’s General Election, with the pound and FTSE 100 making modest gains. Attention now shifts to the anticipated US nonfarm payrolls report, which may impact market sentiment and Federal Reserve rate expectations.
Steady Markets Post Labour Victory and Anticipated US Jobs Report
Following the Labour Party’s expected landslide victory in the UK’s General Election, the financial markets have remained stable. The pound rose by 0.1% to $1.278, its highest since mid-June, while the FTSE 100 increased by 0.2% to 8257.5 points in early Friday trading. This calm reaction is seen as markets had already factored in Labour’s win, with experts anticipating stability under the new administration.
Housebuilders led the FTSE 100, buoyed by prospects of eased planning regulations. Persimmon saw a 3% rise, while Vistry, Barratt Developments, and Taylor Wimpey also achieved significant gains. Conversely, banks like HSBC and Standard Chartered experienced declines, attributed to shifting market focuses.
In the US, all eyes are on the upcoming nonfarm payrolls (NFP) report due Friday, projected to reflect a slowdown in job additions to 190,000 for June. Bitcoin, which dipped below $54,000 earlier, faces its steepest weekly decline since November 2022 due to the anticipated data and Mt. Gox’s recent BTC movements.
As the markets digest these outcomes, analysts suggest that weaker-than-expected job growth may increase expectations for future Federal Reserve rate cuts, potentially benefiting Bitcoin and other risk assets.
