Peter Toogood, CIO at Embark Group, summed up the result as “truly disastrous” for the Conservatives and for Theresa May personally.
“A setback for Brexit as we are a long way from a strong and stable government,” he remarked.
“The pound will take the strain initially but a more redistributive and left-leaning government is a distinct possibility, which is unlikely to be particularly supportive for risk assets.
“We are about to live in interesting times.”
Gero Jung, chief economist at Mirabaud Asset Management says: “The UK election outcome of a hung parliament – with no party decisively winning – implies that trying to get things done will be more difficult.
“Higher political uncertainty is certainly likely to impact the beginning of the Brexit negotiations but also fiscal policy. As to investment implications, we believe that the main short term transmission mechanism is likely to be felt in the currency space, and we re-iterate our view of a weaker pound sterling. While equity markets will react, we do not expect a sharp fall in the short term and do not change our neutral stance on UK equities.”
