The failure of equity markets to price in the likelihood of anything other than an increased Conservative majority in the UK General Election could have major negative short-term implications, the lead manager of Franklin Templeton's UK Equity Income fund Colin Morton has warned.
The manager of the £400m UK Equity Income fund, who earlier this year indicated Prime Minister Theresa May could be a "steady influence" on markets, warned equities could take a hit on 9 June, as opinion polls continue to narrow. "Equity markets feel that there is an absolute certainty that May will have a majority - that is how it is pricing itself," said Morton. "It is saying that even though the lead has fallen, we still see the fact that she will have a strong majority. "The market is not pricing in the Tories having either less of a majority or failing to achieve one at all...
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