AGS NEWS – On Friday, the pound rose after the UK’s Labour Party achieved a significant election victory, ending 14 years of Conservative rule.

Keir Starmer is set to become the new Prime Minister following Labour’s defeat of Rishi Sunak’s Conservatives, although the initial gains in the FTSE 100 index were lost as Wall Street opened.

Labour’s anticipated win has given investors hope for economic stability amid easing inflation.

ALSO READ: United Kingdom appoints new high commissioner to Nigeria

However, Starmer will face challenges including strained public finances, an overstretched healthcare system, and slow economic growth.

Axel Rudolph from IG noted that UK house builders saw a 3% gain, while banks and energy companies also benefited from the election results.

In Paris, stocks fell ahead of France’s critical legislative vote this weekend. Analysts fear a potential political stalemate if no clear winner emerges.

Oxford Economics suggested that France might face policy paralysis, delaying fiscal reforms until the next presidential election.

Meanwhile, US job data boosted investor sentiment, as weaker labor market figures could prompt the Federal Reserve to cut interest rates.

ALSO READ: I’d like to die after eating pounded yam — Pastor Adeboye

Wall Street indices closed higher, with the Nasdaq and S&P 500 extending gains.

The US added 206,000 jobs in June, with wage growth moderating and the unemployment rate rising slightly. This softer labor market data may give the Fed leeway to cut rates in September.

Asian markets closed mostly lower on Friday. The yen recovered against the dollar after hitting a nearly four-decade low earlier this week.

Key Figures Around 2015 GMT:

• New York – Dow: UP 0.2% at 39,375.87 points
• New York – S&P 500: UP 0.5% at 5,567.19
• New York – Nasdaq Composite: UP 0.9% at 18,352.75
• London – FTSE 100: DOWN 0.5% at 8,203.93
• Paris – CAC 40: DOWN 0.3% at 7,675.62
• Frankfurt – DAX: UP 0.1% at 18,475.45
• EURO STOXX 50: DOWN 0.2% at 4,979.39
• Tokyo – Nikkei 225: FLAT at 40,912.37
• Hong Kong – Hang Seng Index: DOWN 1.3% at 17,799.61
• Shanghai – Composite: DOWN 0.3% at 2,949.93

Currency:

• Pound/dollar: UP at $1.2816 from $1.2765 on Thursday
• Euro/pound: DOWN at 84.57 pence from 84.69 pence
• Euro/dollar: UP at $1.0842 from $1.0813
• Dollar/yen: DOWN at 160.78 yen from 161.16 yen

Oil:

• West Texas Intermediate: DOWN 0.9% at $83.16 per barrel
• Brent North Sea Crude: DOWN 1.0% at $86.54 per barrel