FED:Markets dread a hung parliament

AAP General News (Australia)
08-20-2010
FED:Markets dread a hung parliament

The biggest concern for financial markets heading into tomorrow's federal poll is the
prospect of a hung parliament .. and that's because the horsetrading over the outcome
could drag on for days.

Commonwealth Securities chief economist CRAIG JAMES says that no matter which party
wins .. investors want a clear result.

He says a hung parliament or a minority government could cause foreign investors to
trim their exposure to Australia .. putting downward pressure on the sharemarket and the
Australian dollar.

But Mr JAMES says a close .. but clear election outcome .. with one party winning a
three or four seat majority .. could prove a major positive because the government would
have to work hard on its performance.

AAP RTV cb/sb/ar/crh

KEYWORD: POLL10 ECONOMY (CANBERRA)

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