/London Markets: U.K. stocks struggle as Britain heads to election

London Markets: U.K. stocks struggle as Britain heads to election


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U.K. stocks struggled Tuesday amid news the country is heading for a general election before the end of the year.

The head of the opposition Labour Party, Jeremy Corbyn, said Tuesday that he now backs an election since the European Union has agreed to delay Brexit until the end of January.

“We have now heard from the EU that the extension of Article 50 to January 31 has been confirmed, so for the next three months, our condition of taking no-deal off the table has now been met,” Corbyn said. “We will now launch the most ambitious and radical campaign for real change our country has ever seen.”

The FTSE 100

UKX, -0.74%

  traded 0.89% lower to 7266.65, among the worst stock market indexes in Europe. Decliners outnumbered advancers 1083 to 636.

BP

BP, -3.22%

 was the worst performer, shedding 3.6%. The oil giant reported earnings that topped analyst forecasts.

The British pound

GBPUSD, -0.0544%

  recovered from early losses to trade nearly flat on the day, at $1.2861.

Polls have shown the ruling Conservative Party led by Prime Minister Boris Johnson has a sizeable lead over Labour.

“The result needs to be decisive in favour of the pro-leave Conservative Party or the anti-no-deal rainbow of opposition parties. A narrow Tory victory, requiring support from elsewhere to form a workable government, could simply leave us in the same clogged political situation,” said Oliver Blackbourn, multi-asset portfolio manager at Janus Henderson Investors.

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