How UK assets are likely to move after election day

Here is an investor guide sheet for Thursday's UK election.

Sterling. The prospect of either major party leading a coalition contains possible dangers for the pound. There is the uncertainty of "Brexit" should the Tories win, against a possible reduction in foreign M&A should Labour prove interventionist.

But any immediate moves based on these factors are likely to be minor, if they registered at all.

The best counter-trend trade would be if there is a shock majority or a simple coalition is quickly put together. That would hit forex volatility gauges, currently at multiyear highs.

Bonds. As colleagues have noted, the fiscal policies of the two major parties are not that far apart. It's difficult to imagine gilts even being overly spooked by a Labour government reliant on the Scottish Nationalists.

The Bank of England and the ongoing shift in global bond market sentiment should continue to hold more sway.

Equities. Transport stocks might suffer from Labour's pledge to freeze rail fares. Ed Miliband has also talked about capping energy prices, so utilities, already struggling of late as the lurch higher in bond yields hits traditional equity income plays, could face more pressure.

Will City-based groups be more worried about losing EU access through "Brexit" or an increase in Labour-led banker bashing?

Finally, the housing sector doesn't like Labour's mood for a tax on expensive homes.

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