There has been little to no SEK volatility...>

SWEDEN: There has been little to no SEK volatility on the back of the

preliminary results from the Swedish election. It would seem that the left

leaning bloc & the Alliance coalition have drawn a similar amount of seats (a

little over 140 each), with the right leaning SD party attracting 60 or so

seats. There is no clear outcome here. The incumbent PM, Lofven, has said that

he will calmly work as PM over the next 2 weeks. The Riksdag reconvenes on

September 24, when a new speaker will be elected. The speaker will then talk to

the party leaders & present the chamber with a proposal re: the new PM. The

speaker has 4 attempts at doing so, there is no time limit for this, but a

failure after the 4th attempt would trigger a snap election.

- Several of the parties have already called for Lofven to stepdown, with the

centre-right Alliance set to vote against Lofven as PM.

- A minority government cannot be ruled out, many are opposed to the ideologies

of the SD Party, which may limit its role as "Kingmaker" The Swedish Liberal

Party's leader has already ruled out entering into a coalition government with

SD.