>> A wild ride for UK markets Tuesday, sterling tumbling against the dollar on news that Prime Minister Theresa May was to make a surprise announcement. But the pound later bounced back from those losses as news of the snap election broke. Reuters' chief markets correspondent Jamie McGeever.>> The thinking being that Theresa May wins the election with a vastly increased majority, strengthens her position, strengthens her mandate, and takes more control of the Brexit negotiations, thereby marginalizing to whatever extent the hard Brexitiers who up until now appear to have been driving government policy.
>> A different story for equities, the benchmark FTSE index down around 1.5% in the hour after the announcement. Traders betting a stronger pound could cut into overseas earnings for big British firms. As the days go by, plenty of other concerns can start to arise.>> Scotland's first minister Nicola Sturgeon has said the vault strengthens her mandate for an independent referendum and there's also the question of a potential nationalist majority in the north of Ireland as well.
So we could see on June 9th, Teresa May and the conservatives consolidating their power and perhaps leading to a slightly softer Brexit on one hand. Yet with the very existence of the UK itself in greater peril.>> For now though, market reaction to the election seemingly positive. Sterling hitting two-month highs against the dollar.
But market sentiment could prove every bit as volatile as the politics0