Shares exposed to the British domestic economy rallied following a landslide victory for the Labour Party. However, European stocks gave up the day’s gains in a broader risk-off move.
The domestic-heavy FTSE 250 Index was up 0.7% at the close in London, trimming an earlier advance of 1.8% as money managers said they expect the Labour Party under Keir Starmer will usher in calmer and more moderate policy, turning the page on years of turmoil marked by the gilt crisis, Brexit and the Scottish referendum. The export-heavy FTSE 100 dropped 0.6% as the pound strengthened. The Stoxx Europe 600 Index fell 0.2%, while France’s CAC 40 slipped 0.4%.