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Jakob Christensen, chief analyst at Danske Bank, points out that yesterday, pressure mounted on UK PM Theresa May to step down on the back of her renewed bid to find a majority for her Withdrawal Agreement.

Key Quotes

“A senior Cabinet member, Andrea Leadsom, resigned, saying she no longer believed the government’s approach will honour the result of the 2016 referendum. Later in the day, the powerful, so-called 1922 Committee of rank-and-file Conservatives, which oversees leadership elections, decided not to change the rules, but Committee chairman Graham Brady said after the meeting that he will meet with Theresa May tomorrow after the European elections.”

“If Theresa May decides to step down, it opens the opportunity for a more pro-Brexit conservative leader, although such a process may only be completed in autumn. Hence an extension of the 31 October deadline with the EU may be needed, although uncertainty remains high about the potential different scenarios at the moment.”