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Friday, Jan 16, 2026

UK Labour's Landslide Election Victory Boosts European Stock Markets

Europe's stock markets rose on Friday after Labour's landslide election victory in the UK, ending 14 years of Conservative rule. London's FTSE 100 index increased by 0.4 percent with Keir Starmer set to become the new prime minister. In addition, Paris's CAC 40 and Frankfurt's DAX indices also saw gains.
Europe's stock markets experienced a rise in opening deals on Friday, with investors responding to the news of Labour's landslide election victory in the UK, which ended 14 years of Conservative rule.

London's FTSE 100 index grew by 0.4 percent after it was announced that Keir Starmer would become the UK's new prime minister.

Concurrently, Paris's CAC 40 index increased by 0.3 percent and Frankfurt's DAX index rose by 0.6 percent, as eurozone investors awaited France's legislative vote this weekend.

Richard Hunter from Interactive Investor noted that this expected Labour victory did not significantly impact market movements in the UK.

However, European markets were partly bolstered by tactical voting efforts in France aimed at preventing the far-right from gaining power.

Analysts warn of a potential political deadlock in France should there be no clear winner in Sunday's vote.
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