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One week after each resignation the FTSE 350 was higher in all three cases. Gains ranged from 0.85% to 2.40% with an average of 1.51%. Markets moved past the drama. Fast.
Sterling told a different story. After May: GBP/USD fell 2.29% in the following week After Johnson: GBP/USD gained 1.53% After Truss: GBP/USD gained 1.70% Politics affects asset classes very differently.
"Stock markets are equally unsentimental, and yet usually optimistic that a change of leader can provide greater certainty and a firmer hand on the tiller." - Chris Beauchamp, Chief Market Analyst at IG
We looked at the last three resignations. Theresa May. Boris Johnson. Liz Truss. The FTSE 350 moved between -0.74% and +0.74% on resignation day. One week later? Higher in all three cases.
@miyarah_ why is this chairs so cursed
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All still unresolved Brent is falling sharply – $78, third consecutive weekly decline, now sitting on EMA100 and EMA200 support. Oil appears to be pricing in a deal before final one is signed. 👀
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