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Stock market trading could be dented by hung parliament

Stock market trading could be dented by hung parliament
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Stock market trading may face uncertainty as the UK faces a hung parliament with the Conservatives gaining the most seats.

Tory head David Cameron and leader of the Liberal Democrats Nick Clegg have been in talks over the weekend to decide if the two parties can form a House of Commons majority.

However, with no clear policy about how to reduce Britain's deficit, stock market trading may travel along unsteady ground until an announcement over the government is made.

Indeed, almost half of businesses told Travelex Global Business Payments they thought a hung parliament would negatively impact their operations, with a weak pound commonly cited.

"If the markets do not see the deficit being addressed quickly and effectively, the UK's credit rating will come under pressure," Paddy Earnshaw, customer director at Travelex Global Business Payments, asserted.

Over a third thought the Tories would be the best party to encourage banks to lend to businesses again, with Labour getting just five per cent of the vote.

Posted by Greg SeckerADNFCR-1681-ID-19766748-ADNFCR