London stocks surge as Conservatives claim election victory

British financial markets reacted with glee as the Conservatives claimed election victory.
Investors breathed a sign of relief as the prospect of a hung parliament faded as the results rolled in.
The outcome put sterling on course for its biggest one-day rise against the euro since 2009.
European markets are also upbeat.
Fidel Helmer is from Hauck & Aufhaeuser Bank:
“I think right now the clear election result is seen in a positive light. A tight result would have raised the question of how Great Britain wants to set up a government and under what conditions. This could have provoked instability.”
The stability may well be short-lived the Conservatives have vowed to hold a referendum on EU membership and after the resounding success of the Scottish National Party north of the border another call for Scottish independence will be reverberating around Westminster.

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London market slips back on hung parliament fears

Fears of an indecisive result in Britain’s general election and a weak government hurt shares in London and helped the European markets down.

A late poll after voting began suggested a late Labour surge with them neck and neck with the Conservatives, but Britain’s worries had no effect on the euro, which rose to a two-month high against the dollar since its 12-year low in March.

Businesses have expressed concern that Britain may be about to leave the EU and lose Scotland, leaving the world’s fifth-largest economy in unknown territory. The FTSE index is now more than 300 points shy of its all-time April high.

Sterling ticked a little lower and the currency is stable, but the wrong result could send the foreign exchange market into a tizzy.

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