It's time for a look ahead to the key events in markets for the week starting June 12th 2017.
Well, we knew the Conservative had a made a mess of the election campaign, but nobody expected such a shambles of a result. The UK has been left with a hung parliament and PM Theresa May never got her 'stronger mandate' for the Brexit negotiations. The British pound slumped when the main exit poll was released and never really recovered. All the election news and the shake out in currency markets will spice up the Bank of England meeting, plus UK election, unemployment and retail sales data all reported next week.
Although the pound fell, the FTSE 100 as well as other global indices opened higher on election result day. In fact global markets shook off the result as a UK-only affair. The ECB and The Donald are probably more globally significant. Donald Trump looks like he will avoid efforts to impeach him for now (as we suspected) after former FBI Director Comey's testimony to congress last week. The euro fell after the ECB meeting last week; we still think the ECB has to signal tapering, but so far it is being done at glacial speed, meaning downside risk for the euro over the next few weeks.