What does the leadership challenge mean for the FTSE100?

Wednesday, 12th December 2018 10:24 - by Rajan Dhall

The FTSE100 trades higher this morning after reports of a leadership challenge. 

Remember when the pound fall it can benefit the FTSE as lots of the profits from companies are denominated in USD.

Also adding to this fact any issues in Westminster now can be seen as a positive as it could delay leaving the EU.

It is unclear if UK PM May will keep her job but we need to see if the challengers have any real policies that could be put forward. If not then we may be heading towards a 'Hard Brexit'.

Sentiment today has been buoyed by progress in the US-China trade talks. 

Moving forward the ballot will be put forward between 6-8pm this evening and then we could get the result very soon after. If PM May loses the vote there would then need to be a vote to choose a new leader for the conservative party. It must be said there are now 76 MP's supporting may and bookmakers are predicting she will survive the no confidence vote. 

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.