Financial markets are welcoming David Cameron’s triumph, despite fears over EU referendum and Scottish independenceFTSE 100 jumps 2%Banks, bookies, energy firms rallyPound surgesBut what about Scotland and Europe?Election 2015 live: Ed Miliband to resign as Labour leader, the Guardian understandsIntroduction: City hails election result 9.15am BST Vince Cable’s defeat means Britain is certain to get a new secretary of state for Business, Innovation and Skills.Terry Scuoler, chief executive of EEF, the manufacturers’ organisation, is hoping for a “really big hitter” to tackle the UK’s long-term problems:He or she will have an in-tray which will include the need to tackle some of the issues which will help Britain embed and build on the recovery.These include reversing the trade deficit, tackling an energy policy which remains a mess and redoubling efforts to deal with a creaking infrastructure by getting on with important projects, especially building a new airport hub. 9.04am BST Here’s today’s City reaction in a garish, pushy nutshell:Foxtons shares are up 13 per cent... http://t.co/JcVhEvFPo6 #GE2015 pic.twitter.com/y30d3H2Uz5 8.57am BST Engineering firm Babcock has rallied by almost 6.5% this morning. Babcock has a big contract to build the next-generation of Trident submarines; analysts feared it was vulnerable if the Scottish Nationalist Party (which wants to scrap Trident) had supported a Labour government. 8.50am BST Transport stocks also surging, National Express, Stagecoach, Go-Ahead Group all higher. 8.40am BST City trading floor have been gripped by the sight of Ed Balls, shadow chancellor, losing his Morley and Outwood seat by 422 votes.on a trading floor in city: big cheer was heard when Ed Balls lost his seat..The consensus is that FTSE might trade sideways from here and then a possibly volume spike and price rise if/when a Tory majority is confirmed.“Clients who bought the FTSE yesterday are taking profits ....If you’ve been gifted 100 points on the FTSE, you’re probably going to pocket that.”“There are also a number of people buying FTSE this morning, but these are all new positions. The assume that a Tory administration will automatically be good for the economy. That is also why there are a number of buyers of the banks.” 8.34am BST Britain’s government debt is also rallying this morning. The yield on 10-year gilts has tumbled to 1.84%, down from almost 2% earlier this week. That means the cost of borrowing has fallen.“Investors see the UK as a safe haven again. Gilts are a good place to place their money. The result takes the uncertainty out of it”. 8.31am BST The FTSE 250 index of smaller companies has just hit a record high.Bookmaker Ladbrokes are up 10% (Labour had planned a crackdown on betting firms), followed by housebuilder Berkeley Group (+9%) and estate agent Savills (+8%).FTSE250 at a record high #FTSE250 8.19am BST Nick Serff, senior market maker at City Index, explains why shares are surging this morning: “After the global Greek euro concerns we had a snapback yesterday as the markets were oversold. But a potential Conservative majority is a big thing. It’s the certainty it gives to the City. It is the best outcome for the FTSE.” 8.15am BST There are some stunning moves in the City this morning -- here’s the top risers on the FTSE 100. 8.09am BST The FTSE 100 index has surged by 2%, or 148 points, in early trading t0 7028 points as the City welcomes the election result.As expected, banks, energy firms and builders are leading the way. More to follow... 8.05am BST Shares have started trading in London, but we’ve not got the full opening price yet -- suggesting some companies are going to surge..Still waiting on prints for UK banks out of the opening auction, that will give FTSE extra kick 8.02am BST No coalition partner to appease = no watering down. So we get to see where £12bn of welfare cuts are coming from. 8.00am BST Britain should now brace itself for another bout of austerity. We know that £12bn of cuts are pencilled in; we just don’t know where.As Vicky Redwood of Capital Economics puts it:A Tory victory means that the economy will have to endure a fairly aggressive renewal of the fiscal squeeze. 7.57am BST The Conservatives are now projected to win a wafer-thin majority of two seats.If he has increased vote share... That is first time in 60 years for an incumbent prime minister pic.twitter.com/WmitXDCnKQ 7.50am BST Shares in banks and energy companies are set to jump by over 3% when the stock market opens in 15 minutes time. 7.38am BST Sterling +2% vs euro, on course for its biggest daily rise since January 2009. 7.34am BST Half an hour to go, and FTSE100 forecast to start +130 at 7017. 7.33am BST I just caught up with Jeremy Cook, chief economist at currency exchange firm World First, who pulled an election all-nighter.He explains that the pound jumped because last night’s exit poll was so decisive - showing that the Conservatives might come within 10 seats of a majority.“A majority wasn’t priced in... so everyone has been given a little more certainty than they expected.”Uncertainty of 2010 exit poll rattled the pound. Certainty of last night's has got sterling firing on all cylinders #GE2015Nicola Sturgeon must decide what she does with her seats. Does she build a left-unity coalition, or keep banging the independence drum?It was a big issue in rural campaigns, and if David Cameron were to go back on it it would cause a lot of problems with the grass roots.Sterling gains weakening off - maybe a tacit admission that questions on Brexit and Scottish Referendum need to be answered. #GE2015 7.16am BST The pound is also romping up against the euro, gaining almost 2% to €1.3794. 7.09am BST There’s a real feeling of optimism building in the City. The FTSE is now expected to surge by 120 points, or around 2%.We are now calling #FTSE100 to open +120 points and trade above 7000 level at 8am market open 6.59am BST It didn’t take markets long to react to the 10pm exit poll shock:GBP/USD: spot the exit poll moment. pic.twitter.com/oSOHTvzZjm 6.55am BST Market analyst Louise Cooper reckons the pound could keep surging as more results come in: This is because as the old mantra goes, “markets hate uncertainty”. Cameron has governed for the last five years and investors know what they are getting with Cameron and Osborne. Better the devil you know and all that. 6.53am BST Stan Shamu, analyst at IG, explains why the FTSE 100 is going to surge at 8am:With the Conservatives appearing to have gained ground and unexpectedly gaining seats, this seems like it is the market friendly result. It remains to be seen how many additional seats the Conservatives will need from a partner but with the current projections it will be a tiny amount. Election talk is likely to spill over into the weekend and it’ll be interesting to see how long the momentum in the FTSE and sterling can last. 6.51am BST My colleagues Claire Phipps and Andrew Sparrow have launched a new live-blog covering the general election aftermath: Related: Election 2015 live: Labour and Lib Dems crushed in shock election result 6.46am BST Shares in London are expected to surge this morning, as City traders digest the news that David Cameron has pulled off an unexpected success.Spread-betting firms are calling the blue-chip FTSE 100 index up around 100 points. Trading begins at 8am.City boys betting through IG put Tories at 322. 'V busy night for traders'. Ftse bets predict 95 point surge.Currently forecasting #FTSE100 to open +100pts when markets open in over 2hrs time 6.44am BST Guardian front page 6am edition pic.twitter.com/rWeJVGff0l 6.43am BST 6.38am BST The pound has posted its biggest jump against the US dollar since 2009 , as the election results suggest the Conservative Party has triumphed at the polls.Sterling leapt by 1% when the exit polls were released at 10pm, showing that the Tories could take 316 seats - nearly an overall majority.The pound's been pretty stable since that exit poll spike at 10pm - still up 1% at $1.54 pic.twitter.com/JhtW7mfIhj 6.33am BST Good morning. The pound is soaring, and shares are set to surge in London, after one of the most unexpected general election results in recent British history.#GE2015 results as of 6am ... http://t.co/V3ZjyEh6kZ pic.twitter.com/p0lMbeYxKSAll LibDem cabinet ministers have lost their seats and their jobs. Apart from @nick_clegg #GE2015 Related: Election results live: David Cameron set for No 10 in crushing night for Labour Continue reading...
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