Pound sterling surge: Calm before the Brexit storm?

London

BRITISH Prime Minister Boris Johnson's convincing electoral win has set a path forward for British businesses in the short term. At a minimum, there is now some certainty that the UK will leave the European Union (EU) - and soon.

In particular, analysts said, the outlook for small caps has improved on the back of expectations for greater domestic certainty on multiple fronts. Companies can now move forward on decisions involving resources, creating employment and economic opportunities.

Confirmation of the Conservative's Parliamentary majority, the largest since 1987, was followed by a strengthening of the pound to its 19-month high. The FTSE 100, too, saw significant gains.

"A Conservative majority resolves the political uncertainty in the UK with a Eurosceptic party. This may help boost confidence and economic performance in the short term - something that has been affecting UK plc following the country's decision to exit the European Union," said Richard Burrett, chief sustainability officer at private equity investment manager E…