Investors ponder key questions for business as parties kick off election campaigns and Wizz Air soars on latest update

“It’s been some twenty-four hours and UK investors might be forgiven for feeling both shaken and stirred,” says Danni Hewson, Head of Financial Analysis at AJ Bell.

“Whilst US markets have basked in the megawatt fallout from Nvidia’s barnstorming performance, which has seen the chipmakers’ shares hit fresh highs, London markets are still dealing with the rain-soaked election surprise delivered by the PM yesterday. The fair wind blowing from across the Atlantic could only do so much, with Scottish Mortgage one of the obvious beneficiaries.

“But markets don’t like uncertainty and even if businesses have made the right noises about a potential Labour government there are big questions about what degree of change a Keir Starmer-led government might bring to a whole host of sectors. One question is whether housing stocks like Persimmon and Barratt Developments were simply bouncing back from yesterday’s rate expectation reset or whether investors are considering what a Labour manifesto might have in mind for planning reform.

“Utility stocks were always likely to come under pressure on the news that National Grid was shaking its tin to fund network upgrades, but there must also be questions asked about the Labour Party’s plans for energy and where a publicly owned renewable energy company will fit into the mix.

“What kind of pressure might it heap on water companies to invest in crumbling infrastructure whilst protecting the public from significant price hikes, and how will the country’s public transport network evolve?

“Details matter and it’s hoped the next 42 days will bring more of those alongside the glossy videos and rousing stump speeches by all the parties.”

Wizz Air

“Back in the black and flying a record number of passengers on its planes, Wizz Air’s shares soared after the low-cost airline delivered its latest update.

“But it still has ground to make up after being forced to cut capacity over engine issues and geopolitical instability in the Middle East, which has resulted in reworked schedules.

“It’s hard to consider the company’s fortunes today without wondering how different things might be if it had been able to really take advantage of the current travel boom.”

These articles are for information purposes only and are not a personal recommendation or advice.