Fears of an indecisive result in Britain’s general election and a weak government hurt shares in London and helped the European markets down.
A late poll after voting began suggested a late Labour surge with them neck and neck with the Conservatives, but Britain’s worries had no effect of the euro, which rose to a two-month high against the dollar since its 12-year low in March.
Businesses have expressed concern that Britain may be about to leave the EU and lose Scotland, leaving the world’s fifth-largest economy in unknown territory. The FTSE index is now more than 300 points shy of its all-time April high.
Sterling ticked a little lower and the currency is stable, but the wrong result could send the foreign exchange market into a tizzy.
