Our Brief Weekly Economic and World Markets Overview from Quilter Cheviot

Economic Overview

by Richard Carter, Head of Fixed Interest Research

“We have finally reached election week after what has been a fairly unedifying campaign and the opinion polls continue to point to a Tory majority of around 30-50 seats. Currency markets have largely priced in a Johnson victory but we may see sterling rise towards $1.35 if that is confirmed in the early hours of Friday morning. Gilt yields would probably also rise but not by much as there seems little prospect of the Bank of England raising rates any time soon…”

Market Overview

By Alan McIntosh, Chief Investment Strategist

“As we move into the final furlong of the UK general election race markets have all but made up their mind – or at least the currency market has. The pound has moved gradually higher on the expectation of a Conservative majority. This is by no means a certainty however. Previous opinion polls did not predict Donald Trump, the vote to leave the EU, or the Conservatives losing their majority at the last general election… ”