“It does look as though this One Nation Conservative government has been given a powerful new mandate to get Brexit done” – Boris Johnson

Boris Johnson’s Tories Win Decisive Majority in UK Election

Boris Johnson has won another term as the Prime Minister of the United Kingdom. His Tories gained 66 seats, improving from 299 seats previously to 365. In the process, the Tories secured a majority in the 650-seat UK parliament.

Their mandate is clear: finalize the UK’s exit from the European economic & political union, and to do so by the end of 2020. The current Brexit deadline is January 31, 2020.

The Pound Sterling, a bellwether of international confidence in the UK’s economy, shot up on the news of a Tory majority.

Major domestic European and Asian indices, such as in England (FTSE 100), France (CAC 40), Germany (DAX), Switzerland (Euro Stoxx 50), Japan (Nikkei 225) and China (Shanghai Composite Index) closed the week positively.

North American markets also reacted positively on the election news, with the Dow Jones, S&P 500 and Nasdaq hitting intraday all-time highs. The S&P TSX Composite closed just above the 17,000 mark.

Weekly Update – By The Numbers

North America Friday Close Weekly Change Weekly % Change YTD % Change 
Canada – S&P TSX Composite 17,003 6 0.04% 18.71%
USA – Dow Jones Industrial Average 28,135 120 0.43% 20.61%
USA – S&P 500 3,169 23 0.73% 26.41%
USA – NASDAQ 8,735 78 0.90% 31.65%
Gold Futures (USD) $1,480.00 $15.00 1.02% 15.18%
Crude Oil Futures (USD) $59.78 $0.71 1.20% 30.44%
CAD/USD Exchange Rate $0.76 $0.01 0.69% 3.66%
         
Europe / Asia Friday Close Weekly Change Weekly % Change YTD % Change 
MSCI World Index 2,320 24 1.05% 23.08%
Switzerland – Euro Stoxx 50 3,731 39 1.06% 24.33%
England – FTSE 100 7,353 113 1.56% 9.29%
France – CAC 40 5,919 47 0.80% 25.11%
Germany – DAX Performance Index 13,283 116 0.88% 25.80%
Japan – Nikkei 225 24,023 669 2.86% 20.02%
China – Shanghai Composite Index 2,968 56 1.92% 19.01%
CAD/EURO Exchange Rate € 0.68 € 0.00 0.09% 6.40%
         
Fixed Income Friday Close Weekly Change Weekly % Change YTD % Change 
10-Year Bond Yield (in %) 1.819 -0.023 -1.25% -32.38%

 

Sources: theguardian.com, irishtimes.com, Yahoo Finance, Advisor.ca

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