Labour majority helps lift UK stocks, with housebuilders on the rise

Posted by Joshua Mahony -
Scope Markets
  • UK markets rise as Labour enjoy historic victory
  • Housebuilders push higher at the open
  • US jobs in focus as the dollar wanes

The FTSE 100 and mid 250 are both in the green following an overnight election that has been dominated by the red of the Labour party. As widely anticipated, Kier Starmer will lead the country going forward, winning a landslide victory after 14-years of Conservative rule that saw the UK leave the EU, Covid lockdowns, and a cost-of-living crisis fuelled by rampant inflation. The transition of power lines up perfectly with the perceived end of this latest battle against inflation, with the Bank of England expected to begin loosening the constraints around the economy in the coming months. From a market perspective, this change at the top represents a fresh start for the UK economy after a series of troubling crises.

With both candidates promising that they will keep key taxes steady, Starmer’s spending plans will heavily lean on improved rates of economic growth in the years ahead. The UK’s sidestep to the centre-left stands in stark contrast to the dramatic shift to the Far-Right seen across much of mainland Europe. This Friday’s vote in France will have wider ramifications, and a Far-Right majority could yet elevate the UK to a higher esteem for businesses and investors looking for a stable and secure place to do business going forward. Whether or not Kier Starmer takes steps to forge closer trade ties to our European neighbours in the coming years, there is a hope that the UK could once again become attractive for investors seeking access to the region.

One area of particular strength this morning has been the housebuilders, with Taylor Wimpey, Barratt Developments, Vistry, and Persimmon all gaining over 3% at the open. While the government has limited resources for spending given current financial restrictions, the housing sector looks to be an area that can be influenced by enacting a series of policies that will help the housebuilders ramp up supply. The reduction of red tape and opening up new swathes of land for fresh investment could help bring a fresh boost to the sector, although traders are well aware that the expected decline for the first-time buyer stamp duty exemption threshold (back down to £300k) could hinder demand.

Looking ahead, traders will turn their focus towards the US and Canadian jobs market as we close out the week. In a week that has already seen elevated unemployment claims and a decline in the ADP payrolls figure, traders are similarly expecting to see the NFP figure fall through the 200k mark today. While we have seen US payrolls largely outperform expectations this year, much of that increase in employment has been explained away by a surge in temporary jobs as people take on second roles in the face of rising inflation. With the dollar continuing to head lower this morning, there is a hope that a weak jobs report could help lift US equity markets into fresh record highs on the heightened anticipation of a September rate cut from the Fed.

Share this article:

Disclaimer: This material is a marketing communication and shall not in any case be construed as an investment advice, investment recommendation or presentation of an investment strategy. The marketing communication is prepared without taking into consideration the individual investors personal circumstances, investment experience or current financial situation. Any information contained therein in regardsto past performance or future forecasts does not constitute a reliable indicator of future performance, as circumstances may change over time. Scope Markets shall not accept any responsibility for any losses of investors due to the use and the content of the abovementioned information. Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Payment Methods

Scope Markets
Scope Markets
Scope Markets
Scope Markets


Scope Markets
Scope Markets
Scope Markets
Scope Markets

Scope Markets offers institutional and retail trading services to businesses and traders worldwide. Our top management team has more than 20 years of experience in the industry, and we are proud of the solid partnerships we built over the years. Whether it's a business or individual, Scope Markets has a wide range of trading solutions that are compliant, flexible, cost-efficient, innovative, and place the client first.

Contact Us

Registered address:
6160, Park Avenue, Buttonwood Bay, Lower Flat Office Space Front, Belize City, Belize


+44 2030 516959

Risk Warning

Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.

Legal Information

RS Global Ltd is authorized and regulated by the Financial Services Commission of Belize ("FSC") under the Securities Industry Act 2021 with registration number 000274/2.

Restricted Regions

Scope Markets does not offer its services to the residents of certain jurisdictions. Please read carefully our Restricted Countries document.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

© Copyright 2022 Scope Markets. All Rights Reserved.