eToro speaks out on Prime Minister Theresa May’s snap election and its market effect

British Prime Minister Theresa May this morning announced that a snap election will take place on June 8, just less than two months from now.

Britain’s electorate will go to the polls, and will cast their votes based on the first time since 1973 that an independent prime minister will be elected, free from membership of the European Union.

The Pound has rallied this morning, giving confidence that the financial markets economy of an independent Britain with a democratically elected Prime Minister that presides over a country with complete independence will be a positive one.

This morning, eToro, the world’s most prominent social investment platform took note of market events that are worth considering.

Senior Market Analyst Mati Greenspan, eToro said:

“Given the current polling numbers amongst the UK electorate, sterling volatility should be quite short-lived – there was actually greater volatility before we knew what the announcement was. However, we have seen a fall in the FTSE 100 immediately following the announcement, which highlights market concerns about the impact of further political upheaval for UK-listed businesses.

“Overall, positions on sterling have been short. But in recent hours, traders started to take long positions as they took advantage of the short-term dip. The rebound in the price of sterling highlights that markets don’t expect a significant change in policy direction as a result of today’s announcement.”