From Morningstar: 2024-06-12 04:29:00

Widespread equity market disruption is unlikely if Britain’s Labour party comes to power after July 4th, as per polling data. Labour plans a higher minimum wage and corporation tax, potentially impacting large employers. Just three areas show potential for change, allowing investors to position themselves strategically.

Homebuilding in the UK has remained stagnant despite population growth, leading to discontent among non-home owners. Labour aims to reform planning regulations to spur home construction, potentially benefiting UK homebuilding shares like Persimmon and Barratt Developments.

Higher energy prices have impacted consumers due to the Ukraine war, with focus now shifting to the water sector. Approximately 70% of the UK water industry is in foreign ownership, highlighting issues with underinvestment and environmental scandals. Labour promises action, potentially affecting water utility firms.

Both political parties in the UK prioritize defense spending, aiming to increase it from 2% to 2.5% of GDP. This shift could benefit defense firms, with an estimated £17 billion annual spending increase. German defense provider Rheinmetall emerges as a top pick in the sector, currently a 4-star stock.



Read more at Morningstar: Three Sectors That Could Rally After the UK Election