Markets steady as UK election campaign nears end, Topps Tiles sees shares dip, GSK strikes vaccine deal with CureVac

“And just like that, the election campaign that started on a rainy May afternoon, whimpers to an end.” says Danni Hewson, Head of Financial Analysis at AJ Bell.

“London markets have been left un-shaken and un-stirred, largely because the polls haven’t deviated from their initial indications.

“Investors like stability, they like clarity, and by Friday they should have a little of both, at least when it comes to knowing who will be sitting behind the big desks at Numbers 10 and 11 Downing Street.

“Though the outcome seems nailed on, there will be cautious scrutiny of the actions of the next government in those first few heady months.

“What we can know for certain is that whatever colour rosette is on the lapels of the winning team, there will be no let-up in rate cut speculation.

“Markets have been lifted up on the warm breeze that we all hope will carry us gently to that gossamer swathed landing spot.

“It’s true the UK hit a bit of turbulence at the end of last year but, while April did its best to dampen the mood, the economy has proved resilient. As we head to the polls markets are betting there’s a 60% chance that first Bank of England cut will happen at the MPC’s next meeting.

Topps Tiles

“A rate cut can’t come soon enough for Topps Tiles, which saw its share price plunge off the back of another disappointing update.

“Would-be-homebuyers have put plans on hold and many existing homeowners have found increased mortgage costs have made improvements impossible.

“The small sliver of a silver lining came in the form of a more positive outlook, with sales stabilising and the expectation of a surge in housebuilding in the back half of the year.

GSK

“The last few months haven’t exactly been a walk in the park for British pharma giant GSK, which probably explains why the announcement of a major vaccines deal hasn’t sent investor pulses racing.

“GSK wants to be one step ahead of the curve with vaccines. The deal with CureVac gives it the ability to act quickly to any variants of flu and Covid-19 by updating vaccines and, crucially, be in control of the process.

“But the worry is the potential upside of the deal could be obliterated, at least in the short term, by potential penalties relating to Zantac.

“But despite the lukewarm reception today investors know that pipelines are crucial for companies like GSK and the last few years have made us hyper aware of the benefits and profits associated with lifesaving vaccines.”

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