Earlier today the British Prime Minister announced her intention to call an early election. The main opposition parties in Westminster have indicated that they would back a vote on the matter scheduled for tomorrow which would pave the way for an election on the 8th of June.
The PM is calling an election because Westminster was not uniting behind the government particularly in relation to Brexit negotiations. The more sceptical would say that the recent polls giving the Conservatives a 21-point lead is what swayed the Prime Minster.
Whatever the reason, it is clear is that in spite of two months of uncertainty, an election will provide a newly elected government a stronger mandate to implement it’s electoral manifesto and manage Brexit with more confidence. This will be welcomed by the financial and property markets and as it should provide much wanted stability.
Sterling reacted positively to the news, gaining around 1.60% against the Euro and Dollar since the announcement. The reaction of the stock markets is more difficult to call as the FTSE was down before the announcement as were most European indices.
