OUTLOOK : Thatcher Move Unlikely to Jolt Trading in U.S.

Prime Minister Margaret Thatcher’s resignation may spark short-term volatility in British markets but is unlikely to prompt big swings in U.S. financial markets, economists and dealers said Thursday.

Michael Metz, stock market strategist at Oppenheimer & Co., said that if the ruling Conservative Party in Britain were unable to unite, “it could be a negative for the British market.”

But, he added, “it’s more of an internal matter rather than one with repercussions for us.”

U.S. markets were shut for Thanksgiving.

Metz predicted little fallout would drift across the Atlantic when they reopen today, noting that Thatcher’s troubles had been brewing for a while.

“I don’t think it (the resignation) was a great surprise,” Metz said. And the Conservative Party’s chances of winning the next general election are probably better now, he said.

The Conservatives are traditionally seen as the party that looks after the business community, while victory for the opposition Labor Party would likely rattle Britain’s financial markets.

Scott Pardee, chairman of Yamaichi International (America), said the British pound has recently been under pressure but now has the potential to bounce back.