Impact of UK election on markets

For the third time since 2015, 46 million UK voters are invited back to polling stations today to elect a total of 650 constituents as members of Parliament. This UK Election was called by Conservative party leader Boris Johnson after parliament blocked his plans for the UK to leave the EU. As the country has become increasing divided into ‘Leave’ and ‘Remain’ camps, this makes it inherently a Brexit election. Leading to the Election Day, despite that key polls continued to signal a Conservative majority, Boris Johnson’s lead narrowed significantly yesterday. This raised the prospects of a hung parliament, in which no political party enjoys a majority in the House of Commons. Given the poll’s lack of track record in accuracy, the possibility of a hung parliament lies within the poll’s margin of error.  While no one can predict with certainty the election result and investors’ reaction, a hung parliament would be the worst outcome in terms of uncertainty. A minority government would be unlikely to be able to push forward the Brexit process, pass any legislation or implement any budget plans, bringing more instability to the country. With markets hoping for a reduction in...