Investors Pour Into U.K. Markets as Election Result Calms Brexit Jitters

A decisive victory for Prime Minister Boris Johnson’s Conservative Party in the British election sent investors scrambling to buy U.K. stocks and pushed the pound to its highest level against the dollar since May 2018, the Wall Street Journal reported. The FTSE 100 index, which tracks the U.K.’s largest companies, rose 1.9 percent, marking its biggest gain since February. The rally was led by gains in stocks such as house builder Taylor Wimpey PLC and Royal Bank of Scotland Group PLC. The British pound earlier climbed to its highest level since May 2018 before easing slightly to trade at $1.3380 today. Investors are betting on a significant flow of capital back into the U.K. as Johnson’s resounding electoral win sets the stage for lawmakers to trigger a long-delayed split with the European Union. Britain now appears poised to leave the EU by the end of next month, removing a major uncertainty that has weighed on U.K. businesses and investors’ sentiment for more than three years. Read more. (Subscription required.)