By Carla Mozee, MarketWatch
U.K. stocks dropped Thursday, with investors taking a hands-off
approach as Britons headed to the polls to vote in what's been
called the tightest general election in generations.
The FTSE 100 fell 0.7% to 6,886.95, in part on losses in the
heavily weighted energy and basic materials sectors.
The midcap FTSE 250 , whose constituents tend to have greater
exposure to the U.K. economy, however, pulled out a win, finishing
up 0.2% at 17,447.96.
The pound (GBPUSD) late Wednesday traded at $1.5224, down from
$1.5247 Wednesday in New York.
Opinion polls point to the likelihood that the election will
result in a hung parliament, where no party has a majority. The
main political parties, the Conservative Party and the Labour
Party, will likely have to negotiate with smaller parties to form a
coalition government or reach an agreement for a minority
government. Under a minority government, one party would lead, but
find support on an issue-by-issue basis from another party. Read: 7
things you need to know about the U.K. election
(http://www.marketwatch.com/story/7-things-you-need-to-know-about-the-uk-election-2015-05-06)
(http://www.marketwatch.com/story/7-things-you-need-to-know-about-the-uk-election-2015-05-06)The
first indications of the election outcome won't emerge until after
polls close at 10 p.m. London time, or 5 p.m. Eastern Time.
"Watch out for the volatility," on the pound, said Richard
Perry, market analyst at Hantec Markets, in at note. "Cable is a
tough call in the next two days with so many fundamental drivers,"
including Friday's U.S. jobs report for April.
Back to stocks, BT Group PLC shares finished 0.3% lower. They
had been higher earlier Thursday after the telecommunications
group's fiscal fourth quarter net profit beat expectations on
cost-cutting efforts and a boost from its sports TV channels
(http://www.marketwatch.com/story/bt-profit-lifted-by-cost-cuts-sports-channels-2015-05-07-24852536).
Aviva PLC shares climbed 2.6% as the insurer posted a 14% rise
in first-quarter new business
(http://www.marketwatch.com/story/aviva-new-business-up-14-turnaround-on-track-2015-05-07),
and said its turnaround efforts are ahead of schedule.
But Wm Morrison Supermarkets PLC fell 1.6% following the
company's report of a drop in first-quarter sales
(http://www.marketwatch.com/story/morrisons-q1-sales-down-on-restructuring-costs-2015-05-07).
GlaxoSmithKline PLC shares fell 4.5% in the wake of the
company's decision to drop plans to create a separate company
centering on drugs to treat HIV.
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