While the results of the recent UK elections may have come as a surprise to some, markets appear to have been expecting such a result as we’re seeing a positive performance from UK stocks along with the pound, which managed to once again break through the key 1,40 level against the USD. The main concern surrounding the SNP win is the likelihood of another scottish independence referendum which has the potential to greatly shake up the political and economic landscape of the UK. However, the SNP was unable to get an absolute majority and without a coalition with the green party, seems unlikely to be able to pursue it’s agenda unobstructed. As the UK continues to ease covid-19 restrictions, investors are already nervous about the situation and could be influenced further by developments surrounding the elections along with the pandemic situation.
Oil prices start the week higher after US pipeline shutdown
Oil prices have been trending upwards for almost a month with Brent gaining around 8% and reaching a high of $70 before pulling back slightly. At the same time, the price of WTI consolidated in the $65 range after reaching a high of $66,75. However, following what was referred to as a cyberattack, fuel pipeline operator Colonial Pipeline had to shut fuel pipelines, including the largest pipeline on the east coast. While this greatly increased supply concerns, oil prices started the week with upward gaps and while investors appear to be relatively calm for the time being, it remains unclear how long it will be until the situation is resolved. If the situation were to continue longer than initially expected, we could see some major reactions in oil prices due to the increasing risk of supply shocks in major US locations.
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