The FTSE 100 is expected to open lower as the pound dipped and UK bonds fell following Andy Burnham's decisive by-election victory in Makerfield. The win fuels political uncertainty and raises questions about Labour leadership.
The outcome of the Makerfield by-election introduces political uncertainty into the UK market, potentially impacting the Labour party's leadership and influencing investor sentiment and currency valuations.
Andy Burnham secured a decisive victory in the Makerfield by-election, winning 54.8% of the vote. This win is expected to trigger a leadership challenge within the Labour party, potentially limiting Keir Starmer's tenure as leader.
Following the news, the pound edged lower against the dollar, falling approximately 0.3% to below $1.32. UK bonds also declined as rising oil prices exacerbated inflation fears. Stock markets are anticipated to open lower, with gilt markets expected to react to the prospect of a Burnham premiership when they open.
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