UK London Stock Market News Forecasts
Arpil 18, 2017 - UK Prime Minister Theresa May Calls for an Early Election
FTSE On Track for Biggest Loss Since Referendum; Pound Hits 2017 High After Election Shock By The Street
Britain's FTSE 100 is on track for its biggest single-day loss since the country voted to leave the European last June after Prime Minister Theresa May called for a snap election to shore-up her mandate to negotiate a Brexit agreement.
The U.K. benchmark, which had been under pressure in the early part of the session thanks to slumping mining and basic resource sector shares, extended those losses after May's surprise address outside Downing Street at 11:15 BST. The index was last seen 155 points, or 2.11% lower at 7,173.3 and on track for its biggest decline in June 27. The loss snuffs out nearly all of the gains made so far this year in local currency terms, although when converted to U.S. dollars, the gain comes out at 7.8%.
That gain comes, in part, thanks to Tuesday's surge in the pound, which rose 1.37% to a year-to-date high of 1.2743 against a weakened U.S. dollar following the election call, which the Prime Minister hopes to contest on June 8, amid speculation the vote might deliver a mandate for a "softer" exit for the European Union.
In a reversal of her earlier position that Parliament should remain in place until 2020, May said she "reluctantly" decided to approach lawmakers for an early national poll in order to put to rest "the risks of uncertainty and instability ... and to continue to give the country the strong and stable leadership it demands."
"Britain is leaving the European Union and there can be no turning back. And as we look to the future, the Government has the right plan for negotiating our new relationship with Europe," May said. "At this moment of enormous national significance there should be unity here in Westminster, but instead there is division. "The country is coming together, but Westminster is not."
May said she would put forward a bill to lawmakers Wednesday to repeal the Fixed Term Parliament Act, which keeps the current government in place until at least 2020. A two-thirds majority of UK lawmakers is required to dissolve the current parliament and allow new elections to be held.
The ruling Conservative Party holds 330 of Parliament's 650 seats, while the opposition Labour Party holds 229 and the Scottish National Party holds 54. Current polling, taken prior to the Prime Minister's statement, suggests the Conservatives would win 44% of the vote at the next election, Labour 23% and the Liberal Democrats 12%.
Should May add to her existing majority, she could rightly claim to have an unambiguous mandate from the electorate as she begins the gruelling two-year process of leaving the European Union later this summer.
However, she also risks alienating voters in Scotland, who overwhelming voted to remain part of the EU. Scottish National Party Leader Nicola Sturgeon, who has said she'll call a second referendum on independence from London, could add to her 54-seat total and strengthen her grip of regional politics, a move that could thwart the Prime Minister's ambitions both at home and abroad.
Online Forex Trading Platform and Award Winning Forex Broker AvaTrade
Trade Currencies, Commodities, Indices, Equities, and Bitcoin
Invest2Success Investment Advisory Stock Picks
Free Trial - Receive daily low-risk high-reward SP500 NYSE Nasdaq buy-long and short-sell stock picks that are experiencing strong increasing and decreasing earnings, that include buy sell entry, stop-loss, take profit area price targets, and trade management information to your email inbox.
Stock Option Forex Futures Training Seminars Webinars Workshops
Click Here For The Complete 2017 Schedule
Professional investors traders teaching successful low-risk high-reward
trade strategies. Power profit secrets for stocks, options, forex, futures
investing trading success. Or avail of Home Study Courses and or
Trading Softwares available to improve your investment returns.