Results from the European parliamentary elections showed that despite the Brexit party growing huge support in the UK, pro-European parties held their own across the rest of Europe, stemming the rise of Euroscepticism.
The results on Sunday evening helped European stock markets rally yesterday, Monday 27 May, with the Stoxx 600 of European shares up 0.5 per cent. The news also bolstered that Euro, and pushed it back above $1.1200, before retreating later in the day, due to remarks from two European Commission officials that disciplinary measures are expected to start against Italy on June 5 over rising debt and breaches of the European deficit rules.
In an interview with the Financial Times yesterday Peter Praet, the European Central banks chief economist who steps down at the end of May, has hit out at Donald Trumps “America Frist” rhetoric and highlighted how the ongoing trade wars are holding back investment globally. He argues that as the US and China continue tit-for-tat tariffs, business owners will hold off making decisions, Mr Praet added that “stalling on investments, stalling on reorganising your firm, this waiting mode that companies are in can be very damaging”.
Meanwhile, the race to succeed Theresa May continued over the UK bank holiday weekend. So far nine Tory MPs have announced their intention to run in the leadership election that will begin Monday June 10, with more expected to join the race. Mrs May announced that she would be stepping down on Friday June 7, after overseeing the state visit of Donald Trump.
Today sees few data releases, as the UK and US return from national holidays yesterday. Markets will digest the EU election results and potential fallout from disciplinary actions against Italy. Bank of England Governor, Mark Carney testifies in front of the Treasury Select Committee this morning.
Theresa May could call it a day on her premiership
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