Like many before her and no doubt many to come, Theresa May took a political gamble in trying to cement her position as the leader of the UK government.
Unfortunately for her, this proved to be a catastrophic miscalculation and she ended up with fewer MPs than she did before and was forced to cobble together an embarrassing deal with the Democratic Union Party.
In the immediate aftermath, markets remained subdued with only a contained weakness observed in sterling. UK stocks largely remained resilient as the country was thrown into political turmoil and uncertainty.
The resilience of UK stocks in the wake of the shock result may have been a surprise, but low volatility has become a feature of the ‘Brumpit’ era.
During the period of Brexit and Trump (Brumpit), the FTSE 100 and FTSE 250 have repeatedly shrugged off uncertainty and moves of 1% or more have become rare.
There was, however, pockets of selling in cyclical shares particularly exposed to the UK economy in the house builders and banks which could be a sign of things to come.
The selling was short-lived as markets looked through the mess created by the election and forward to Brexit negotiations.
As developments of the new government and Brexit talks were released to the market, analysts, stock brokers and traders have begun to position themselves for the world of a minority government negotiating the UK’s exit from the European Union.
Key UK stock market themes
You can discover a range of shares that are being rated as ‘Buys’ and ‘Sells’ in the Stocks & Shares reports at the bottom of this page.
Throughout these reports, you will find that the City is focused on a number of key variables and their impact on share prices.
Anyone who has been following the FTSE 100 over the past year will know that London’s leading index has developed a strong inverse correlation over the past year.
Such is the correlation, some share ratings now rely heavily on the outlook for the pound.
The manner in which the divorce talks are carried out could prove to be the biggest determinant of share prices over the next decade.
No matter whether we get a ‘soft’ or ‘hard’ Brexit, there will be companies which benefit in either scenario as certain sectors flourish while some sectors face disastrous adversities.
Value v Growth
In a market continuously making record highs, it can be beneficial to distinguish between positions aiming to exploit the inherent value in a share price and purchases made for the potential of strong growth in the coming years.
Special Report Covering:
- What went wrong for Mrs May?
- The Impact on Sterling and the UK Markets
- Fundamental and Technical reasons behind each these FTSE 250 stock’s buy ratings
Stocks rated ‘Buy’ include; an undervalued UK leisure operator, the UK financial services company recovering from multi-year lows and a telecoms stock mid-way through dramatic reforms.
In addition, this report includes:
- What the shock outcome means for markets
- How sterling can now drive stock markets
- What the election result means for Brexit negotiations and the shares in a position to benefit
Request this report now and discover the shares being tipped as buys after Theresa May pushes forward with Brexit negotiations.