Defying expectations, United Kingdom Prime Minister Rishi Sunak will call a snap election for July 4 as the Conservative Party attempts to fend off a dire polling deficit against the rival Labour Party. The UK recently entered a recession after reporting consecutive quarters of GDP decline.

What Happened: On Wednesday, Sunak unexpectedly announced a general election from outside 10 Downing Street, according to the BBC. He will face off against Labour Party leader Keir Starmer for majority control.

"Now is the moment for Britain to choose its future, to decide whether we want to build on the progress we have made or risk going back to square one with no plan and no certainty," Sunak said. "Earlier today, I spoke with His Majesty the King to request the dissolution of parliament. The King has granted this request and we will have a General Election on 4 July."

The speech was reported by CNN to be overshadowed by protestors near the Prime Minister's residence who made it "virtually impossible" to hear Sunak.

Why it Matters: According to BBC polling, Sunak faces an enormous polling deficit: the Labour Party has most recently polled at 45% while the Conservative Party polled at 23%. Sunak's predecessor, former PM Liz Truss, resigned after only 45 days in office, bringing Conservative party support down with her. Truss' fiscal policy was controversial and its results were unpopular among voters.

The Conservative Party has controlled 10 Downing since 2010: David Cameron, Theresa May and Boris Johnson have also held the office since 2010.

Price Action: The iShares MSCI United Kingdom ETF (NYSE:EWU) traded at $36.45, down 0.82%, while the Franklin FTSE United Kingdom ETF (NYSE:FLGB) traded at $27.62, down 0.92% at the time of publication Wednesday.

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