“There is some thought that a large majority for the Conservatives in Parliament would lead to a ‘harder’ Brexit – and that this would negatively impact financials and banks given their reliance on European markets,” he said.
“I’m not sure that this is the case. May and her team have proven that they will compromise on many things and pursue a pragmatic approach.”
Other commentators said the election could in fact force the Conservatives to take a softer line on Brexit.
Rathbones’ chief investment officer Julian Chillingworth agreed the FTSE had suffered due to the fact most major UK equities are “global-earners”.
“Whether the election rules out the possibility of a hard Brexit, is still unclear,” he said.
“If the last 12 months have taught us anything, there is no such thing as a foregone conclusion when it comes to voting agendas. This gambit takes the UK into new territory.”
