Pound firm as investors embrace 'boring is good' with Labour win

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The pound held firm and British shares were set to rise today after the Labour Party surged to a comprehensive win in a parliamentary election, affording investors some certainty after years of market volatility.

As of 6am this morning Labour, led by Keir Starmer, had won 405 of the 650 seats in parliament, giving it a large majority with a handful of seats yet to declare.

Conservative Prime Minister Rishi Sunak has conceded defeat.

Sterling firmed slightly after the release of the exit polls, which proved to be broadly accurate, and was last trading around $1.2767.

The pound was broadly unchanged against the euro, which was at 84.75 pence.

Futures linked to the FTSE 100 stock index were up 0.24%, slightly higher than those for Europe-wide blue chip stocks.

“It’s a breath of fresh air to be running (UK) equities in a market where the election is seen as non-event,” said Laura Foll, portfolio manager at Janus Henderson Investors.

“I’m hoping we’re going back to an era where boring is good and politics treads lighter in people’s lives,” she said, adding: “It will be a more gradual lifting (of confidence).”