Investing.com
Published Jun 08, 2017 22:04
Updated Jun 08, 2017 22:32
Investing.com - The UK General Election as it happened.
At 06:00 BST, it was announced that no party could reach the 326 seats required to achieve a majority, thus the 2017 UK General Election resulted in a hung parliament.
The Conservative Party lost the election, but remains the largest party. It remains to be seen whether a minority government will be formed by Theresa May's party, or if they will attempt to form a coalition with Northern Ireland's Democratic Unionist Party (DUP), who secured 10 seats in the election. This would give the Conservatives the majority they need to form a government.
The Labour Party has also voiced their intention to set up a minority government.
Questions have since been raised over the upcoming Brexit negotiations due to begin 11 days after the election. The EU hinted at delayed talks.
The market
Highlights from the count
Declared seats
Awaiting 1 seat
Exit polls not far off
The BBC updated the exit poll several times throughout the night, at one point predicting 322 seats for the Conservatives.
As a hung parliament was confirmed, the BBC released yet another forecast, which gave the Conservatives the greatest lead but still without the 326 MP majority required. The forecast, with fewer than 7 seats left to declare, showed 316 seats for the Conservatives, higher than the 314 projection in the initial exit poll, but lower than the forecasts released throughout the count. This leaves the Tories 10 seats short of a majority.
The Labour forecast was 265, only down 1 seat from the initial exit poll, but remarkable and wholly unexpected gains for Labour overall.
With 35 seats, the SNP lost 21 seats. However, despite the SNP losing a large chunk of their seats, they remain the largest party in Scotland.
The Liberal Democrats made gains in the election, gaining at least 4 seats. The initial exit poll predicted 14 seats with the forecast downgrading this to 13. Former deputy prime minister Nick Clegg lost his seat to Labour in Sheffield.
Forex
At 03:45 BST the pound was down against most major currencies, as a hung parliament looked more likely.
Against the dollar, GBP was 1.2750 down 0.62%. The US Dollar Index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.34% at 97.28. Former director of the FBI, James Comey's testimony against President Trump was not as controversial as markets feared.
The euro was up against the pound. EUR/GBP was 0.8772, up 0.44% from the previous session close of 0.8734.
Against the safe haven Japanese yen, sterling was down 0.23% with GBP/JPY at 140.67. While against the Swiss Franc, the pound was down 0.56% with GBP/CHF trading at 1.2347.
Against commodity currencies, the pound was down considerably. GBP/AUD was 1.6932, down 1.37% from previous close of 1.7167. GBP/CAD was 1.7217, sterling was down against the Canadian dollar by 1.61%. Similar losses against the New Zealand dollar as GBP/NZD was 1.7669, down 1.63%.
Throughout the election count, investors will be looking to see if Prime Minister Theresa May's gamble in calling the election paid off.
Exit Polls
The exit poll released just as the polls closed at 22:00 BST showed the possibility of a hung parliament.
The first exit poll showed the Conservative Party will win just 314 seats, a drop from the 331 seats they won in the 2015 General Election. The poll showed the Labour Party winning 266 seats, an increase of 34 seats from the 2015 General Election.
With 326 seats needed to win a majority, Prime Minister Theresa May's position may have weakened considerably.
At 22.02 BST, following the release of the first exit poll, sterling slid to 1.2738, 0.70% lower than the previous session close of 1.283.
The results from the first exit poll:
The campaign: projections from 100 seats to one percentage point, how it happened
On June 8, the British people went to the polls for the third time in as many years.
Prime Minister Theresa May called the election in the hope of extending the Conservative Party's majority by as many as 100 seats. Thus delivering a stronger mandate for the government in the upcoming Brexit negotiations.
Upon calling the snap election on 18 April, the Conservatives were 20 percentage points clear of the opposition Labour Party. Indicating the election would be a landslide victory for May's Conservatives.
Local elections on May 5 further strengthened belief the Conservatives would win a comfortable majority.
The markets responded well to the predicted win, with sterling reaching highs not seen since September 2016.
On 19 May pound edged above the 1.30 mark.
The pound since failed to make these gains as a result of weaker than expected data, and contradictory opinion polls showed the Conservatives' majority was decreasing.
Several gaffes throughout the campaign weakened May's extended lead, such as her U-turn on the so-called dementia tax.
A YouGov poll showed the Conservative party would lose their majority in government, sending the pound lower.
Last weekend, a Survation poll claimed the Tories were only one percentage point clear of Labour.
Former Home Secretary Theresa May came under intense scrutiny following the terror attack on Saturday on London Bridge, the second terror attack of the campaign, and the third in the past 3 months. Labour leader Jeremy Corbyn called for her resignation.
This is is a breaking news story; please refresh the page for updates.
Written By: Investing.com
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