With just two weeks to go until U.K. general elections, investors are busy positioning themselves to take advantage of any major moves in asset markets.
Recent polls indicate that the result looks too close to call. Both the Labour and Conservative parties unlikely to get enough votes to govern alone, meaning another coalition is most likely on the cards.
But all coalitions are not created equal – at least when it comes to financial markets.
A socialist pact between Labour and the Scottish Nationalists (SNP) is seen as a negative for financial assets, analysts told CNBC, for instance. Whereas the continuation of the current Conservative-Liberal Democrat coalition could reassure investors and spark a rally.
But with so many potential permutations for the parliamentary elections on May 7, markets are having a hard time pricing in all the risks. Here, CNBC highlights what has happened in the past -- and what could happen over the course of the next few weeks.