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The United Kingdom’s Labour Party won in a landslide in Thursday’s elections, taking back power from the Conservative Party after 14 years. The center-left party’s win boosted U.K. stocks, especially those homebuilding companies, as the party promises to bring back economic stability to the country.
In Thursday’s election, the Labour Party won 412 of the country’s 650-seat House of Commons, while the Conservatives won 121.
The party’s leader Keir Starmer is set to become the country’s next prime minister.
“A mandate like this comes with a great responsibility,” Stramer said in his victory speech. He added that regaining the people’s trust will “be the battle that defines our age.”
Since the party’s win, the the Financial Times Stock Exchange (FTSE) 100 Index — an index of the 100 companies listed in the London Stock Exchange with the highest market caps — gained 0.4%. The FTSE 250 Index — an index the following 250 companies on the London London Stock Exchange with the highest market caps — was up 1.8%.
The pound rose for the seventh straight day, up 0.1% to about $1.277.
Home building stocks saw some big gains too, as the Labour Party has committed to 1.5 million new homes. The FTSE 350 household goods and home construction index gained 1%. Persimmon, one of the U.K.’s largest homebuilders rose 3%.
Goldman Sachs researchers said in a note on Friday that the Labour Party’s win “should provide political stability and marginally higher growth, we see modest positive implications for UK stocks, especially more domestic slices of the market.”
They added that high public spending “could lift potential output” and closer ties with the European Union “could mitigate some of the costs of Brexit.”