Despite weathering a nasty political storm in recent months, U.K. leader Theresa May and her weakened government still has many market participants on edge, with the potential for another election still a distinct possibility.
According to Joan Hoey, the Economist Intelligence Unit's regional director for Europe, there is "considerable risk of the (U.K.'s) government collapsing." May's slender 13-seat majority, forged only through a compromising, expensive deal with the Democratic Unionist Party, could well "disappear quickly as a result of by-elections that will occur," Hoey explained.
The U.K. prime minister marked one year since she took the country's helm Thursday, while left-leaning opposition leader Jeremy Corbyn visited Brussels to meet with major European players in Brexit negotiations.
Adding to the jostle for power between the two politicians, a YouGov poll released last Friday denoted Corbyn with an eight point-lead over his rival May, rubbing salt into the wound of her loss of a government majority in last month's General Election. The shifting fortunes of the Labour and Conservative leaders have left voters – and investors – wondering when the U.K. will hold its next vote.