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British stocks soar, pound jumps to 19-month high as Tory win moves UK closer to BREXIT | |
(about 1 hour later) | |
The British pound surged on Friday after the Conservative Party of Boris Johnson won a solid majority in the general election to end years of Brexit uncertainty. | The British pound surged on Friday after the Conservative Party of Boris Johnson won a solid majority in the general election to end years of Brexit uncertainty. |
The pound soared 2.3 percent to $1.34 against the US dollar, which is its highest level since May 2018. It also recorded a 3-year high against the euro to €1.21. | The pound soared 2.3 percent to $1.34 against the US dollar, which is its highest level since May 2018. It also recorded a 3-year high against the euro to €1.21. |
The currency had been rising steadily in recent weeks as traders bet on Prime Minister Boris Johnson’s win. | The currency had been rising steadily in recent weeks as traders bet on Prime Minister Boris Johnson’s win. |
The euro was also trading higher on Friday, up 0.40 percent at $1.12. | The euro was also trading higher on Friday, up 0.40 percent at $1.12. |
British stocks on the FTSE 100 index jumped nearly two percent at the start of trading, with main European indices pointing higher. | |
Berenberg Bank senior economist Kallum Pickering told CNN that a clear victory for Johnson should mean a boost for the UK economy, which has ground to a halt in recent months. GDP growth could rise to 1.8 percent in 2020 from 1.3 percent this year, before accelerating further to 2.1 percent in 2021, he said. | Berenberg Bank senior economist Kallum Pickering told CNN that a clear victory for Johnson should mean a boost for the UK economy, which has ground to a halt in recent months. GDP growth could rise to 1.8 percent in 2020 from 1.3 percent this year, before accelerating further to 2.1 percent in 2021, he said. |
The Tories passed the majority threshold, garnering 363 seats in Parliament. This means that Boris Johnson will return to Downing Street with a mandate to “get Brexit done” and lead the UK out of the EU next month. | The Tories passed the majority threshold, garnering 363 seats in Parliament. This means that Boris Johnson will return to Downing Street with a mandate to “get Brexit done” and lead the UK out of the EU next month. |
For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |
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