general election

Both the FTSE and the British pound dipped down by mid-morning trading on Tuesday, ahead of a big surprise announcement from Prime Minister Theresa May.

May has called a press conference for 1115GMT, an event usually reserved for more serious announcements. Rumours are circulating over the topic of the speech, with speculation that she may be about to call an early election rife.

Sterling was trading up by mid-morning at around $1.26 after a four-day Bank Holiday break, but has since dropped sharply on the news. It is currently down 0.18pc against the dollar, 0.31pc against the Euro and 0.51pc against the yen (1038GMT).

The FTSE 100 is also trading down after a flat start on the day, currently down 0.96pc at 7,257.26 (1039GMT).

So far the politics world is completely in the dark as to the nature of May’s announcement, but an early general election has been the biggest rumour so far. However, as several spectators have pointed out on Twitter, the Fixed Term Parliament Act makes this almost impossible without the vote of 2/3 MPs.