Swedish centre-left Prime Minister Stefan Lofven was ousted in a no-confidence vote in parliament on Monday, plunging the country into deep political uncertainty as it tackles the Covid-19 pandemic.

Lofven, who was defeated after nearly seven years in power over a plan to ease rent controls for new-build apartments, now has a week to resign and hand the speaker the job of finding a new government, or call a snap election.

With parliament deadlocked and...