The post-Tory election stock market bounce is over – Business Insider
May 12, 2015, 3:57 AM
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Matt Cardy/Getty ImagesThe party is over for traders
The FTSE 100 opened over 1% lower this morning as the jubilation over a Tory victory wears off in the City.
The FTSE 100 and 250 both jumped on Friday on news of a surprise Tory majority in the UK elections.
But Britain’s index is over 110 points lower this morning, or 1.6%. The biggest faller is easyJet, down over 7% after warning that French strikes in the airline sector back in April mean full-year profits will be £25 million ($38.95 million) lower than forecast.
Accendo Markets analyst Mike van Dulken told clients in an email this morning: “Strong business confidence following a Conservative win is tempered by a budget deficit of around 5% of GDP, which is over the EU’s limit of 3%, and the prospect of a referendum on the UK’s future in Europe. Retail sales also disappointed in May with the early Easter holidays largely blamed for the print missing consensus and deteriorating on last year.
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The post-Tory election stock market bounce is over – Business Insider