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Matthew Lynn’s London Eye: U.K. election will strengthen May’s hand, sterling and the FTSE

The Netherlands. France. Italy. Germany. As if the markets did not already have enough political risk to deal with in Europe, they now have one more thing to worry about.

British Prime Minister Theresa May has called a snap general election, with the country set to go to the polls on June 8. Anyone hoping that the political upheavals across the continent would settle down, and that they could get back to valuing markets and companies on metrics such as profits and growth, is in for a disappointment. Politics looks set to dominate the agenda right through the summer.

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