British stocks soar, pound jumps to 19-month high as Tory win moves UK closer to BREXIT
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 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.
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.
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.
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