Morten Lund, an analyst at Nordea Markets, notes that the UK is set for its third general election in four years, as PM Boris Johnson yesterday finally won the backing of the House of Commons to hold a snap election.

• “The election is scheduled to take place on 12 December. The combination of an election and an extension of the Brexit deadline until 2020 is in line with our long-held house view.
• The outcome of the December election will, in our view, be a determining factor for the Brexit end-game. As such, the upcoming election could be seen as a proxy vote for the people’s view on Brexit.
• The timing of the election in December and dissolution of Parliament on Wednesday 6 November (due to the 25 working days rule) mean that there will be practically no time to pass a Withdrawal Agreement Bill before Christmas. Consequently, the Brexit end-game will at the earliest be in 2020.”