Shares and Pound surge on Election Outcome

UK shares and the pound have jumped after the Conservatives won a parliamentary majority in the election.

The FTSE 100 rose 2.32% to 7,046.82, with shares in banks and energy companies seeing big gains.

On the currency markets, the pound was up more than two cents against the US dollar at $1.5455.

The Conservatives have unexpectedly managed to secure a slender majority, to the relief of investors who had expected a long period of uncertainty.

In the run-up to the election, opinion polls had suggested that no one party would win a majority, raising the prospect of a hung parliament.

But the markets welcomed the news that the election outcome was clearer than expected.

“It appears that we will avoid weeks of uncertainty and horse-trading,” said UBS in a research note.

Bank shares saw some of the biggest gains, on hopes that the sector will not see any further rises in levies. Shares in Lloyds Banking Group rose 5.75% while Barclays was 3.7% higher.

Energy firms also saw their share prices rise, as Labour had wanted a price freeze and more powers for the energy regulator. British Gas owner Centrica rose 8.1% and SSE shares were up 5.3%.

Source: BBC News