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Global Markets Calm After Comey Testimony & ECB Meeting; UK Election Ends in Hung Parliament

Published June 9, 2017
  • Global stocks moved higher this morning after Thursday’s risk events failed to provide any substantial shocks to global markets; James Comey’s testimony did not offer any evidence that could derail the Trump presidency while the European Central Bank offered a routine dovish tone
  • Results from the UK election show that Theresa May’s Conservative party has lost its majority, leaving the UK with a hung parliament; with 649 of 650 seats counted, the Conservatives have won 318 seats, failing to reach the 326 mark for a parliamentary majority
  • The UK Labour party secured 261 seats and has called for Theresa May to step down from the role of Prime Minister; May had originally called the election to consolidate her party’s power for upcoming Brexit negotiations with the European Union
  • The pound is down against the US dollar this morning as Theresa May had planned to begin talks with the EU on June 19; there are now fresh uncertainties over the strength of the UK government and its ability to negotiate effectively with the EU over Brexit
  • Bank of Canada Governor Stephen Poloz spoke yesterday on the risks of rising consumer debt and possibilities of a correction for housing markets; Poloz also mentioned that Canadian economy had shown more signs of strength in recent months
  • Canadian employment change confirmed his statements this morning with an increase of 54,500 jobs versus and expected 11,000; the Canadian unemployment rate came in at 6.6%, as expected
  • Oil prices moved slightly higher this morning; prices are on track for weekly losses around 4% due to increasing production from the US and Nigeria, while instability between Qatar and neighbouring states threatens the stability of the OPEC supply cut deal