Nomura bank have kindly pulled together this excellent chart of  stock market reactions to the past nine elections. Most striking is the 18 per cent plunge in UK equities following the 1974 hung parliament. We’ve heard a lot about these political risk haunting the capital markets. But equities are also one to watch, particularly given the bullish turn of late. Nomura tell their clients there is a 35 per cent chance of a hung parliament. For some it will be good reason to follow the old adage ‘sell in May and go away’.

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