“The ‘hung Parliament’ creates more uncertainty surrounding the U.K.’s exit from the EU.
It will likely delay negotiations with the EU, increase the risk of a disorderly Brexit, and bring in a period of heightened political insecurity,” reports ETF Daily News. “The Brexit negotiations were set to begin on Monday, June 19. But they might have to be postponed. And that means the U.K. may be staring at weaker growth as uncertainty increases.”
The European Central Bank has been implementing a loose monetary policy that dragged yields down to record lows. Consequently, dividend-paying European stocks and related exchange traded funds (ETFs) may strengthen as more investors turn to riskier assets.
Additionally, market analysts have upwardly revised their projections on Eurozone markets as a weakening euro currency, stronger global demand and steepening yield curve help support revenue growth, potentially signaling a turn in the prolonged earnings recession.
For more information on the Eurozone, visit our Europe category.