UK Markets Are Full of Risk for Traders Glued to Political Drama
- The pound and FTSE 100 were steady after the confidence vote
- Traders say the leadership turmoil will depress sentiment
Investors said the political instability is bound to worsen sentiment on the pound.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
The political infighting at Westminster is reinforcing the views among traders who say UK markets are still brimming with risk.
UK markets were stable on Tuesday, with the pound slipping to $1.2514 and the FTSE 100 Index holding firm, after Prime Minister Boris Johnson won the confidence vote from Conservative MPs. However, the deep divisions in the party show investors that on top of searing inflation, recession worries and higher interest rates, the UK’s top leadership lacks support.