UK: May day for the British economy - ANZ

After taking comfort from the Dutch and French election results, markets were reminded that the anger and resentment vote is alive and well, with the UK election delivering the incumbents back into power, but in an unconvincing and very narrow fashion, explains the research team at ANZ.

Key Quotes

“Uncertainty is rife on numerous levels, and while markets were rattled, there was still a sense of containment amidst hope of a) potentially a soft Brexit; and b) less fiscal austerity. The Prime Minister is back in 10 Dowling St but the knives will be out with eyes on the Foreign Secretary. An inability to make decisive changes to cabinet highlighted a position of weakness as opposed to strength. The Brexit negotiating position has been weakened. How workable is the coalition? What/who exactly is the DUP? And what does the deal look like? There appears to be agreement in spirit but no deal. Will the young millennials turn up and vote in other elections around the globe too?”