Past Hung Parliaments Have "Little Market Impact"

Many investors waking up this morning will be asking themselves "what now?" We ask three experts how a hung parliament will affect stock markets and the economy

Emma Wall 9 June, 2017 | 9:38AM
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Hung Parliaments Don’t Impact Markets

Ed Smith, Asset Allocation Strategist, Rathbones

Only two general elections have resulted in a hung parliament since the Second World War. The first was in February 1974 and the second in May 2010. February 1974 does not offer a paradigm relevant to today.

2010 offers a more appropriate case study, although the economy was on much shakier ground than today. The hung parliament only lasted six days before a Conservative-Liberal Democrat coalition was cemented. The pound fell 2% against the US dollar the day after the polls closed, and continued to fall a further 2% even after the Liberal Democrats announced their approval of the coalition deal.

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About Author

Emma Wall  is former Senior International Editor for Morningstar