Where next for the UK stock market?
The UK stock market has been very volatile over the last few weeks amid uncertainty over the UK political scene and now concern that the European Union could be falling apart. A number of prominent issues have come and gone such as the EUR750 billion bailout fund, initially well received but now attracting more and more sceptics, the bailout of the Greek economy, initially very slow but now apparently under control. So where next for the UK stock market?
Many investors in the UK are waiting for signs from the new coalition government as to how it would reduce the large budget deficit and which taxes will be increased in the short to medium term. Despite initial concerns about conflicts between Conservative party and Liberal Democrat party financial policies there seems to have been a breakout of peace and we are starting to see a clear roadmap for the future.
However, the proof is very much in the pudding and so far we have yet to see any concrete plans issued into the public domain. We are likely to see the first coalition government budget in the summertime and issues such as capital gains tax, income tax and public sector investment will be at the forefront of change. Uncertainty is the enemy of the UK stock market but recently it has been available in abundance!
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