FTSE futures, gilt yields fall as odds improve on Corbyn-led government

FILE PHOTO: A man shelters under an umbrella as he walks past the London Stock Exchange

LONDON (Reuters) – London stock exchange futures sank, gilt yields fell and the pound dived below $1.27 <GBP=> for the first time in almost two months on Friday as odds tightened on Labour leader Jeremy Corbyn becoming the next British Prime Minister after UK elections.

With trading volumes extremely thin out of London hours, FTSE futures <FFIc1> were quoted down 0.2 percent as voting results began to come in, backing projections that showed Prime Minister Theresa May losing her overall majority in parliament.

10-year gilt yields also fell around 5 basis points <GB10YT=TWEB> from closing levels in London on Thursday, according to indicative data quoted by Tradeweb on Reuters systems, suggesting shocked investors will seek the security of bonds when markets reopen properly in London on Friday.

(Writing by Patrick Graham)