UK stocks, pound climb after Labour election win [Video]

The London stock market advanced Friday after Britain’s centre-left Labour Party clinched an expected landslide election victory to end 14 years of right-wing Conservative rule.

London’s benchmark FTSE 100 index climbed following news that Keir Starmer will become Britain’s new prime minister after Labour trounced Rishi Sunak’s Conservatives.

The widely-forecast triumph has sparked investor hope of economic stability amid easing inflation, although Starmer faces tough challenges in the form of strained public finances, a stretched state health service and flagging economic growth.

Frankfurt and Paris stocks also climbed Friday with eurozone investors on tenterhooks before France’s crucial legislative vote this weekend.

The British pound gained versus the dollar and euro.

“UK stocks say yes to Starmer,” summarised Kathleen Brooks, research director at trading firm XTB.

“While we wait for the official handover of power, focus will quickly shift to political issues elsewhere.”

“The second round of French elections take place on Sunday. Financial markets in France are calm ahead …