Market Impact As Leaders Fumble And Tumble

A tale of two PMs

What do Boris Johnson and Mario Draghi have in common? Unless you’ve been living under a rock for the last few weeks, you’ll probably know the answer. Both PMs have, of course, resigned this summer. But the initial impact on the markets couldn’t have been more different.

Bye-bye Boris!

On 7 July UK PM, Boris Johnson, announced that he would be stepping down following insurmountable pressure from his cabinet and the parliamentary Conservative party.

Dragh-ing it out

Like BoJo, former Italy PM Mario Draghi didn’t exactly jump off the ship at the first opportunity. The PM finally resigned on 21 July, having had his resignation denied by the President just a few weeks before.

Why the difference?

While the UK currently faces many struggles — Brexit and a cost of living crisis — investors have relative confidence that with the next UK PM, things will bounce back. With a sizeable Conservative parliamentary majority and immediate plans announced to find a successor, all is going to plan and the status quo should be resumed in no time.

Have your say!

Do you think other factors are at play here? What do you think is next for these two economies? Let us know by tweeting us at @_Contentworks.

Top trading events this week

We should see quite a quiet week in the markets, here are the hottest events for your trading calendar.

Monday

● USD — ISM Manufacturing PMI (JUL)

Tuesday

● AUD — RBA Interest Rate Decision

Wednesday

● AUD — Employment Change QoQ (Q2); Unemployment Rate (Q2)

Thursday

● GBP — BoE Interest Rate Decision

Friday

● AUD — ​​RBA Statement on Monetary Policy

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