We expect to see flows back into UK equity and credit now that some of the Brexit uncertainty has been removed.
The ruling UK Conservative Party won a large outright majority in Thursday's election, giving Prime Minister Boris Johnson a stable government and mandate to deliver Brexit in January. The pound and domestic-focused UK equities should benefit from greater political certainty after four years of wrangling over leaving the European Union, with bond yields climbing on a brighter growth outlook and expected fiscal stimulus, in our view.
A difficult deal
We see the UK entering