Maike Currie, vice president of personal finance at PensionBee, said: “Three things matter now to investors and markets: who becomes the next Prime Minister, who becomes the next Chancellor and what the bond market does next.
“If Andy Burnham emerges as Labour leader, markets will be watching whether ‘Manchesterism’ – his model of devolved government, regional investment and a more interventionist state – translates into a fiscally disciplined programme.
“They’ll also be watching closely who gets the keys to the Treasury, with investors looking for a Chancellor who can command confidence in the public finances.
“Finally, all eyes will be on the bond market. If political uncertainty persists or fiscal credibility comes into question, higher gilt yields could quickly feed through into mortgage rates, pension values and annuity rates for millions of UK households.”
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