FTSE moves higher as Conservatives head for majority

FTSE moves higher as Conservatives head for majority

The FTSE 100 index has gained 1.65 per cent in early trading as markets reacted positively to the news that David Cameron looks set to remain prime minister.

With a handful of seats left to declare as of 8.48am the Conservatives hold 307 seats to Labour’s 223 with Mr Cameron likely to form a single party government as he heads to the 326 majority figure.

The FTSE All Share index has also moved higher on the news, rising 1.71 per cent, while European indices also reacted positively. The FTSE EuroFirst300 index has moved 1.75 per cent higher, while the Cac 40 index in France has gained 0.61 per cent and the German Dax index has added 0.6 per cent.

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Nigel Green, founder and group chief executive of deVere, commented: “I suspect David Cameron’s slender majority in the Commons outcome will be met with an immediate sigh of relief by investors. However, this might be the calm before the storm. The prospect of an in-out referendum of Britain’s EU membership has gone from risk to a reality.”