The Peruvian presidential election is hanging by a thread. With 95% of votes counted, the gap between left-wing candidate Pedro Castillo and right-wing rival Keiko Fujimori is less than one percentage point. British investors are watching the count with gritted teeth.
The FTSE 100 barely moved today, but the chatter in the City is anxious. Castillo's promise to rewrite the constitution and nationalise key industries has spooked markets. Fujimori, a former congresswoman with a corruption conviction, is not exactly a safe pair of hands either.
The result will shape Peru's economic trajectory for years. British mining giants like Anglo American and BHP have billions tied up in the country. A Castillo victory could mean renegotiated contracts and higher taxes.
A Fujimori win might bring political chaos but policy continuity. The count continues. The betting markets have flipped three times tonight.
No one knows who will end up in the presidential palace. The British foreign office is standing by. Whitehall sources say a 'wait and see' approach is the only option.
For now, the City holds its breath.
