Taking stock of the political climate

Although the festive season is now over and with the British Government seemingly in some disarray, what could we have expected any future Corbyn government to have delivered in our Christmas stocking at least as far as the financial markets are concerned?

It would be almost inevitable that bond prices would fall sharply as the presents were unwrapped to reveal a sizeable debt parcel for everyone, neatly packaged by the elves in The Treasury.

Santa’s mince pie and glass of milk will likely cost more next year and that visit to the North Pole will become just a little bit more expensive.

But would there be no festive cheer at all I hear you ask? Well one possible beneficiary in this season of goodwill could be the UK equity market.

This is because share prices adjusted for the overseas earnings which many of these companies receive and with a likely repeat of this process the stock market might, ironically, perform better even before the last of the mince pies have been eaten.