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Since 1970, UK stocks have collectively fallen by 2% in the month after a Labour victory, according to Wall Street giant JP Morgan.
However, the bank said on 10 June that this time could be different if Labour wins the general election on 4 July. “We think that this time, a Labour win will likely be seen as a positive for the UK markets. The current Labour party has a much more centrist policy agenda.”
The party’s policies would likely be “modestly pro-growth, but crucially with a likely cautious fiscal approach”.
The note named stock market sectors that could benefit from a Labour majority, assuming that happens, which looks likely but still isn’t guaranteed.
The sectors
In a nutshell, JP Morgan reckons supermarkets, banks, and housebuilders could benefit.
It says a continued focus on the cost-of-living crisis would be positive for food retailers. The banking sector would benefit from…
