Fund managers have been increasing their exposure to domestic UK stocks ahead of the 12 December General Election in the expectation that a Conservative Party majority will deliver a resolution to Brexit and avert the economic fallout of a Labour victory, thereby creating a bullish environment for domestically exposed stocks.
The most recent data (13 November) from polling company ComRes has the Tories on track to receive 40% of the vote, leaving Labour on 30%, though that would not deliver enough seats in the House of Commons to command a majority. Domestic UK companies saw a brief boost last week after Nigel Farage confirmed his Brexit Party would not contest constituencies currently held by the Conservatives but would instead aim to make gains in Labour-held seats. Sterling rose by 0.63% against the US dollar over the course of Monday (11 November) on the news, with Nigel Green, founder and CEO of deVer...
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