(13 Dec 2019) UK financial markets reacted positively to the Prime Minister Boris Johnson's Conservative Party victory, with a majority of seats in Britain's Parliament - a decisive outcome to a Brexit-dominated election that should allow Johnson to fulfil his plan to take the UK out of the European Union next month. The pound surged when an exit poll forecast the Tory win, jumping over two cents against the dollar, to 1.3445 US dollars, the highest in more than a year and a half.
Many investors hope the Conservative win will speed up the Brexit process and ease, at least in the short term, some of the uncertainty that has corroded business confidence since the 2016 vote.
Also the FTSE 100 and 250, London stock exchange indexes, reacted very positively to the electoral results, hitting record high on Friday morning.
According to IG chief analyst, Chris Beauchamp, the increase is linked to the outlook of more political stability after years of uncertainty over Brexit.
With 648 of the 650 results declared on Friday, the Conservatives had 363 seats and the main opposition Labour Party 203.
That message appears to have had strong appeal for Brexit-supporting voters, who turned away from Labour in the party's traditional heartlands and embraced Johnson's promise that the Conservatives would "get Brexit done."
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