The post-Tory election stock market bounce is over – Business Insider

Oscar Williams-Grut

May 12, 2015, 3:57 AM
41
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. 

Fears that Britain could also leave Europe are hitting the FTSE 100, with the possibility of a referendum as soon as next year.

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.

NOW WATCH: Here’s what ‘Game of Thrones’ stars look like in real life

Please enable Javascript to watch this video

Source:

The post-Tory election stock market bounce is over – Business Insider