FTSE tumbles as sterling comes under pressure
After a monumental night in the history of UK politics we waking up today with the UK stock market down around 100 points and sterling down 2% against the dollar. Despite the fact that there are still many election results to be announced it is almost certain that David Cameron will fall short of the 326 majority required to control parliament. There is now horse-trading between the political parties, in private and not in public, with even the Liberal Democrats under pressure after a disappointing evening.
When you also take into account the debt problems within Europe, and especially Greece, it is no surprise that UK stock markets and indeed worldwide stock markets are coming under pressure. Despite the fact that a hung parliament has been the more likely outcome for a few days now it is the realisation of yet more delay and red tape in the UK which could hold back the economic recovery. Gordon Brown appears adamant he will attempt to put together a coalition government with the Liberal Democrat party despite the fact that the Conservatives are likely to hold the lion's share of seats in the Commons.
We are waking up to a new era for the UK political scene and many people are finding it difficult to adjust.
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