UK stocks take beating, FTSE100 falls 1% ahead of outcome of British PM election

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UK stocks take beating, FTSE100 falls 1% ahead of outcome of British PM election


NEW DELHI: UK stocks took a beating on Monday morning, falling over 1 per cent ahead of the outcome of the UK elections, where Liz Truss is likely to be named leader of the governing Conservative Party and Britain’s next Prime Minister at 11.30 GMT (5 pm India time).

At 2.15 pm IST, the FTSE100 index was trading at 7,209.35, down 71.84 points or 0.99 per cent. A total of 19 index constituents fell over 3 per cent each.

Dechra Pharmaceuticals PLC plunged 7.38 per cent to GBX 3,238. GBX is Pence Sterling, a subdivision of Pounds sterling (GBP).

A total of 100 GBX equals one British pound. Smurfit Kappa Group declined 7.02 per cent to GBX 2,742. CRH PLC declined 4.37 per cent to GBX 3,056.50. Simth (DS) PLC fell 4.21 per cent to GBX 259.70. OCDO Group PLC, Spirax-Sarco Engineering, Intermediate Capital Group PLC, Croda International and Scottish Mortgage Investment Trust PLC slipped over 3 per cent each, data available with London Stock Exchange suggested.

Opinion polls have given Truss – currently Britain’s foreign minister – a big lead over Rishi Sunak, who quit as finance minister in July to contest the Conservative Party leadership race, which ends on Monday with an announcement of the winner.

Some investors are alarmed that tax cuts promised by Truss could aggravate Britain’s inflation problem, speeding up the Bank of England‘s interest rate hikes and worsening a recession that the BoE expects to start this year and end only in 2024, Reuters reported.

Sunak has dismissed her tax cut plans as “fairy tales” which will fuel inflation, another report suggested.



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