Political uncertainty looks set to remain a recurrent theme in the markets going forward.
In Germany, Chancellor Angela Merkel's Christian Democratic Union caught a break when the Social Democratic Party (SPD) stepped up to the plate after coalition talks with the Free Democratic Party and Greens fell through. SPD leader Martin Schulz said his party would begin talks with Merkel, although he asserted that a final decision would depend on party members.
Elsewhere, Ireland faced its own crisis after a motion of no confidence in Deputy Prime Minister Frances Fitzgerald — part of the minority Fine Gael government — over a whistle blowing controversy.
Meanwhile, Brexit continues to remain in focus in the U.K. Most recently, Ireland's EU commissioner warned that Dublin could potentially veto Brexit trade talks if a decision is not made on the Northern Irish border. Dublin is looking for assurance that there will not be a hard border between the Republic of Ireland and Northern Ireland, which is part of the U.K.
Also of note are Saudi Arabia, which is currently involved in an ongoing tussle for influence with Iran in the Middle East, and the U.S., where the Trump administration is struggling to cement any landmark legislation despite a GOP majority in both houses of Congress.
