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“Investors seem calm on the eve of the UK General Election with the FTSE 100 up modestly and sterling steady, having recovered from a sell-off early yesterday on signs the polls were tightening,” says AJ Bell Investment Director Russ Mould.
“Just before voting opened, the polls suggested that a Conservative majority, seen as the preferred market outcome against the uncertainty of another hung parliament, was perceived as increasingly likely.
“A similar pattern could be observed ahead of the referendum shock in June 2016 with the FTSE 100 and the pound both moving higher ahead of the results, a reminder that nothing can be taken for granted.
“The more domestic focused FTSE 250 is broadly flat, perhaps showing some lingering nervousness about the vote.
“All eyes will likely be on an exit poll at 10pm tonight which should offer some guide to the ultimate outcome."
Dixons Carphone
“Dixons calls its performance ‘robust’ but that has to be viewed in relative terms to its troubles in recent years. An 18% decline in first-half mobile revenue is hardly what one would call robust, however expectations were low going into the results.
“The retailer has a turnaround plan which involves improving its online offering and making physical stores more engaging for customers, effectively using them as showcases for products and to give advice.
“The store remodelling will require investment which is a brave move in a retail world where physical shops are increasingly being phased out. In comes a greater number of large screen TVs and out will go slow moving products, condemned to online sales only.
“That makes sense – the challenge will now be in the execution and getting people to visit stores in the first place. Competition from the likes of Amazon remains intense and same-day delivery from Argos is also making life tougher for Dixons.
“While it could be the last man standing in the world of selling electrical goods in physical stores on a large scale, that doesn’t mean Dixons is going to be rolling in wads of cash. It is still going to be a hard slog to prosper.”
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