What will investors unwrap on Thursday night?

The gap between the main parties in the polls suggests a Labour-led government is still plausible, but by far the most likely result of Thursday’s general election is a Conservative majority. That would be the best outcome for UK assets and the economy’s near-term prospects and would be followed by an acceleration in GDP growth. That said, the lingering risk of something like a no deal Brexit at the end of next year will limit the increase in GDP growth.