It’s all about the general election on Thursday when polling stations open across the country.
The pound is set to experience volatility when the results begin to trickle in, with the currency likely to weaken if Theresa May fails to secure the whopping majority she had hoped for.
The latest election polls have revealed that the Tory lead over Labour has been narrowing. A new poll from YouGov has put the Conservatives ahead at just four points over Labour while ICM has its lead standing at 11 points.
“Sterling could go either way on Friday as the general election result remains too close to confidently predict,” said Neil Wilson, senior market analyst at ETX Capital.
“The polls have significantly narrowed and there is now a significant chance of a hung parliament.”
Wilson said in the event of a hung parliament, the pound could plunge on increased political risks and a possible delay to Brexit negotiations. But if the Conservatives increase their majority, the pound ought to rise part of a broader relief rally in UK assets, he said.
Polling stations will be open between 7am and 10pm. The details of an exit poll will be released shortly afterwards, giving an indication of how the nation voted. In the past three elections, the exit poll has been quite accurate.
The first results will follow an hour or so later from Houghton and Sunderland.
Boohoo reports first quarter results
Boohoo.com plc’s (LON:BOO) is set to report a robust first quarter with revenues expected to rise 35% on the back of the successful acquisition of fellow online fashion retailer PrettyLittleThing.
The clothing website’s full year guidance may be revised as PrettyLittleThing has been delivering triple-digit sales growth, according to analysts.
Boohoo purchased 66% holding in 21 Three Clothing, which trades as PrettyLittleThing, for £3.3mln in cash in January.
The group also bought the intellectual property and customer data of fashion retailer Nasty Gal in February for US$20mln after the brand declared bankruptcy in November.
Boohoo is now the second biggest company by market value on London’s AIM listing behind ASOS. But its market capitalisation of £2.4bn is still half of that of ASOS, which has a valuation of £4.86bn.
Boohoo’s shares have risen more than 63% in the year to date and more than 300% over the past 12 months as its website grows in popularity among young fashionistas.
The company reported a 97% increase in annual pre-tax profit to £30.9mln on growing demand in the UK and in the US.
Announcements due:
UK election polling
Finals: CMC Markets Plc (LON:CMCX); FlyBe (LON:FLYB);
First Property Group PLC (LON:FPO); Auto Trader Group Plc (LON:AUTO); Volex Group PLC (LON:VLX)