What will an election mean for the UK stock market?

The UK stock market and the pound are already pricing in a mountain of political risk. Equities listed in London are under-owned by global investors and sterling is flirting with multi-decade lows.

But, if Boris Johnson manages to get the election he wants, could a fractious campaign actually make things worse?

While not exactly discounting Armageddon, UK shares have already got a significant amount of doom and gloom in their valuations.

However, with sentiment around politics driving markets at the moment rather than fundamentals, such an increase in uncertainty could have a negative effect. That’s because it not only increases the unpredictability of the Brexit outcome, but it adds another…