Markets buoyed by Theresa May’s appointment

Ryan Bembridge

July 11, 2016

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Theresa May’s appointment as Prime Minister has boosted the markets by ending the uncertainty surrounding Number 10.

The FTSE 100 hit an 11-month high and the pound rose after Andrea Leadsom quit the Conservative Party leadership contest this morning.

Prime Minister David Cameron will hand in his resignation on Wednesday and May will take over.

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Green, deVere Group founder and chief executive, said: “Theresa May, a Remain supporter, will not be as aggressive in the Brexit negotiations as Andrea Leadsom would have been.

“May could possibly kick triggering Article 50 way into the long grass, or go for the Norwegian model and allow free movement in exchange for access to the single market.

“This kind of ‘Brexit-Lite’ might well please the markets – which had widely priced in and were largely relying upon a Remain victory before the shock result.”

Leadsom quit after controversially claiming in The Times that being a mother gave her the edge over May.

Green added: “Leadsom quitting eradicates one layer of the uncertainty that has been hanging over the UK since the historic vote to leave the EU.

“The many question marks since the Brexit decision have, unsurprisingly, created volatility in the markets.  With Leadsom pulling out there is one less question mark.

“Investors in the UK and globally are craving more certainty and stability in the UK and this should help.

“Whilst the pro-Brexit lobby will argue that the FTSE is up almost 5% since the referendum and at an 11-month high on Monday, this doesn’t reflect the real picture of the UK economy.

“Firms on the UK’s blue chip index receive most of their earnings from outside Britain.  The current gains on the FTSE reflect international companies’ earnings being enhanced due to the weakness of the pound.”

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