The results from the UK general elections are in: Boris Johnson has won a resounding victory in the best election for the Conservatives in over 30 years.
Johnson will now remain a Prime Minister and enjoy a comfortable majority in Parliament, which would allow him to press forward with his Brexit withdrawal agreement. The Prime Minister has already reiterated his intention to take the United Kingdom out of the EU by the end of January, and now he finally has the means to do so.
Though investors had already priced in Johnson’s win to a huge extent, as all forecasts seemed fairly certain the Conservatives will have no trouble winning the election, the confirmation offered by the official results massively boosted the British pound. The GBP climbed to $1.3474, its highest level in a year and a half, against the USD, and to an almost three-year high against the euro at 82.80.
Meanwhile, the financial markets received further reassurance on the trade war front, as China and the United States announced significant progress has been made in their talks.
The US will postpone the tariffs scheduled to take effect this Sunday, while China has agreed to buy $50 billion worth of agricultural goods from the United States. Moreover, some of the previously imposed tariffs will be reduced.
The positive tone of the day helped bolster the price of crude oil. Brent crude rose to $64.95, while the WTI brand reached $59.70 per barrel. The dollar has also relaxed due to all of the news, further helping oil prices rise.
