Is this Australia's own Brexit moment? Election uncertainty COMMENT Elizabeth Knight A ustralia has delivered its contribution to political and economic uncertainty. We face either a hung parliament or a wafer-thin majority in the lower house and an unruly Senate.
It's our own Brexit moment. 
It is the market and the economy's worst nightmare.
Even if Turnbull's Coalition government claws its way into office his party's mandate to reform has been shattered and his poor electoral showing will reopen smouldering factional disunity. While the destabilising aftermath of the Brexit vote moved into a lull towards the end of last week, the full wash-up will not be fully understood for years.
In Australia the instability that will reign over the economy and politics will remain under whichever fragile governance emerges after Tuesday when the remainder of the votes begin to be counted.
A raft of Coalition reforms from superannuation and innovation to business tax cuts for all but very small enterprises must now be in doubt. But the stockmarket and ratings agencies that adjudicate on our sovereign debt will deliver the most damning score cards this week as the dust settles and a result becomes clear.
The looks of Moody's, Fitch and Standard & Poor's are widely expected to downgrade the country's Triple A rating or at least place it on negative credit watch on the expectation that the budget deficit will blow out.
Trends in Australia's credit profile will be determined by whether fiscal objectives are effectively implemented, whether external financing conditions remain favourable and how housing market developments affect domestic growth and financial conditions, Moody's Investors Service said on Monday.
Of these three factors, the biggest risk will be whether whoever forms government will be able to implement its fiscal objectives.
Fitch's statement on Monday also appeared to be a hedge of its bets but with a bit more emphasis on the negative.
"The close contest could mean a fiscal outlook and set of policies significantly different to those set out in the FY2017 budget, with negotiations potentially necessary to implement key policies. Fitch will assess the government's ability to manage public finances prudently following the election result, as well as flexibility in responding to a volatile global economic is the market's worst nightmare environment. Fitch views Australia's overall credit profile as still consistent with a 'AAA' rating, but political gridlock that leads to a sustained widening of the deficit would put downward pressure on the rating, particularly if the economic environment deteriorates."
Ratings agencies were quick to downgrade Britain's credit rating within a week of the vote to leave the European Union.
Before the election votes were counted markets had been looking for a very positive start to the week - but the post-election reality market saw the sharemarket index fall 12 points at the opening of trading on Monday.
A few hours later the market moved back into positive territory and at the end of the day was ahead by around 18 points, reflecting the fact that we will probably see no firm direction until the election result is properly inked.
The Australian dollar was initially belted, having opened down half a cent in early morning trading but by lunch it had recovered lost ground.
Markets don't like uncertainty.
Speculators will be in the ascendancy this week while many other investors will wait on the sidelines until the election outcome becomes clear.
One small ray of sunshine for the electorate will be the improved prospects of receiving an interest rate cut over the next five weeks.
The Reserve Bank of Australia will have an opportunity to move on Tuesday but the betting is that it will wait until early next month to shave another 25 basis points off the rates - taking it to a new all- time low of 1.5 per cent.
environment. Fitch views Australia's overall credit profile as still consistent with a 'AAA' rating, but political gridlock that leads to a sustained widening of the deficit would put downward pressure on the rating, particularly if the economic environment deteriorates."
Ratings agencies were quick to downgrade Britain's credit rating within a week of the vote to leave the European Union.
Before the election votes were counted markets had been looking for a very positive start to the week - but the post-election reality market saw the sharemarket index fall 12 points at the opening of trading on Monday.
A few hours later the market moved back into positive territory and at the end of the day was ahead by around 18 points, reflecting the fact that we will probably see no firm direction until the election result is properly inked.
The Australian dollar was initially belted, having opened down half a cent in early morning trading but by lunch it had recovered lost ground.
Markets don't like uncertainty.
Speculators will be in the ascendancy this week while many other investors will wait on the sidelines until the election outcome becomes clear.
One small ray of sunshine for the electorate will be the improved prospects of receiving an interest rate cut over the next five weeks.
The Reserve Bank of Australia will have an opportunity to move on Tuesday but the betting is that it will wait until early next month to shave another 25 basis points off the rates - taking it to a new all- time low of 1.5 per cent.