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Election results

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Japan's general election produced a stronger-than-anticipated victory for the governing coalition. The government retains two thirds of the lower house of the Diet, which will make constitutional change simpler. The result signals a continuation of current economic policies.
  • The Czech Republic's general election produced a strong showing for the Eurosceptic ANO party. This follows a trend in some Eastern European states recently, where anti-immigration parties with a less collaborative approach to the EU have been gaining support.
  • UK Prime Minister May is to outline the government's strategy for exiting the EU (assuming that there is a strategy for exiting the EU). The opposition Labour Party is considering aligning with rebels from the governing Conservatives, so the structure of the strategy may have a bearing on market uncertainty about the process.
  • There is little economic data to distract markets today. A couple of ECB speakers are scheduled, but so close to an ECB meeting nothing much is expected. There is some business sentiment data from the US and the UK, also unlikely to excite much in the way of market passion.