What are the implications of the UK and French elections?

What are the implications of the UK and French elections?

Monthly highlights, July 2024

The muted market response to the new UK government had something in it for supporters and sceptics alike. The former can argue that the election result was widely anticipated and the limited reaction a sign of comfort with the new administration. On the other hand, it could also suggest doubt about the government’s ability to significantly change the UK’s economic outlook, despite a large parliamentary majority. In France, meanwhile, political uncertainty is likely to remain high, though a hung parliament should reduce the risk of destabilising policy proposals being implemented.

We have shared our thoughts on the UK and French elections below and will be providing further insights in our upcoming webinar on 23rd July. You can register here.

Global markets ended the second quarter on a strong note. Investors have been encouraged by better data on inflation, suggesting that the Federal Reserve may soon be able to start cutting interest rates. Corporate earnings remain relatively robust, though growth in profits has once again been driven by the largest US technology companies. We will be closely monitoring the upcoming results season to assess prospects for the remainder of the year.

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UK election 2024: our reaction

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Over the medium-term, however, the new political landscape could result in more uncertainty for the economy and markets.

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These articles are issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

Matthew Stone

EMEA Sales Manager at FTSE Russell | Strategic Client Engagement, Revenue Growth, Market Expansion

4 个月

Good summary

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