UK shares and the pound have jumped after the election
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.
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 Lloyd’s Banking Group rose 5.75% while Barclay 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%.