FTSE: UK Election Poll Shows Labour Party Set to Win Large Outright Majority

Various UK election polls show the current opposition Labour party is set to win a landslide majority in the house of parliament.

Gino Bruno D'Alessio•Tuesday, June 4, 2024•1 min read

ftse declines on labour victory polls

Various UK election polls show the current opposition Labour party is set to win a landslide majority in the house of parliament.

A Deltapoll survey completed between May 31 and June 3 showed the Labour party received 48% of voting intentions and the Tory party dropped to 25%. The numbers equate to the Labour party landing a house majority of 197 seats.

The Labour party would secure 422 seats and the Tory party would muster only 140 seats. That’s a sharp decline from the 365 seats the Tory party currently holds.

The Labour party is known for big government spending higher taxes for all, and consequently a flailing economy.

Recent gains from GDP Growth and a perception that the BoE may cut rates this year may be ephemeral if the left-wing party wins the election on July 4.

The FTSE has dropped 0.50% so far today, a continuation of the bearish run after yesterday’s recent high of 8,365.

Technical View

Technically the FTSE is still in a bull trend from what we see in the day chart below. The all-time high achieved on May 15 resulted in a correction point which is still ongoing. The next major support would be the Ichimoku cloud at 8,128.

ftse fall on bad political news

The previous 2 candle bodies have remained within the support/resistance levels set by the Fibonacci retracement levels of 0.236 and 0.382. Today’s candle has found support on the 0.382 retracement line at 8,202 (orange line).

The next level of support is the 50% retracement level at 8,116, while the closest resistance level is the 0.236 retracement level at 8,309 (red line). If that resistance is broken we would need to see a close above the ATH of 8,480 to reestablish a bullish trend.

FTSE

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ABOUT THE AUTHOR See More

Gino Bruno D'Alessio

Gino D’Alessio is a professional Forex trader with 20+ years of experience in the financial markets as a broker-dealer. Having worked in New York and London, Gino is regularly featured on Seeking Alpha. He completed the CAIA program in 2015, which also gave great insight into global macro factors. His main focus is FX majors, indices and commodities.