FTSE 100 up 0.4, FTSE 250 adds 1.7
Labour Party wins parliamentary election
Homebuilders, real estate stocks soar, banks fall
US payrolls data on tap

July 5 Reuters UK domesticfocused stocks surged on Friday after the Labour Party scored a landslide victory in a parliamentary election, bringing a sense of stability to investors who expect it to end years of market volatility.

The domestically focussed midcap FTSE 250 was up 1.7, hitting its highest level since April 2022, as of 0747 GMT.

Any changes in the UK39;s economic activity will impact the FTSE 250 more than the FTSE 100. Investors feel that a labour government is going to be a positive catalyst for the UK economy as a whole, said Michael Field, European market strategist at Morningstar.

The bluechip FTSE 100 rose 0.4, after logging its best day in almost two months in the previous session. The FTSE small cap was up 0.3.

Keir Starmer was set to become Britain39;s next prime minister, ending 14 years of Conservative government after a cruising victory in the polls.

The pound held firm after the win and was last up 0.1 against the U.S. dollar.

Goldman Sachs raised its UK GDP growth forecast and said that the midcap FTSE 250 is the stock index to watch for investors under the Labour government.

Automobile and parts were the highest gainers among sectors, with a 3.1 rise. Homebuilders and real estate stocks also jumped 2.4 and 1.5, respectively, as investors cheered Starmer39;s plans for the housing…