Foreign secretary Liz Truss is widely expected to become prime minister when the Conservative Party announces its next leader.
Mould crunched the numbers on how the FTSE All-Share index ASX performed after new prime ministers took office mid-way through a Parliament after the predecessor departed — the scenario currently unfolding. “On average, the FTSE All-Share made no progress at all under the trio during their first 12 months in the hot seat, rising on average by 1.9% over the first three months of the new PM’s tenure, gaining 1.5% over six months and coming in slightly down over a year,” noted Mould.
Similarly, Callaghan took the helm shortly after the FTSE All-Share hit a multi-year low following the oil price shock of the early 1970’s and after his predecessor oversaw left-wing policies considered unpopular with investors, such as windfall taxes and price controls. “Despite the challenging macro outlook, the UK market…offers good value,” said Trevor Greetham, head of multi-asset at Royal London Asset Management.