The FTSE 100 surged following the shock General Election result as the pound plummeted against both the dollar and euro.
London's top flight index ended the day up by more than 1 per cent or 77.35 points at 7,527.33 as investors digested news that Theresa May's Conservatives had fallen short of an overall Commons majority, resulting in a hung parliament.
Sterling also plummeted off the back of the result, having dropped 1.7 per cent against the US dollar since Thursday evening to trade at 1.27 - its lowest level since mid-April.
Versus the euro, the pound also fell more than 1.1 per cent to 1.13 euros, to levels not seen since January.
General Election Front Pages 2017 - In pictures
Michael Metcalfe, global head of macro strategy at State Street Global Markets, said: "Markets were poorly prepared for this surprise result in the UK.
"The approach to the potentially larger and more dangerous hurdle of Brexit will now surely be delayed. It is a shock that markets were not well prepared for, and in response sterling is likely to remain under pressure."
Markets had priced in a healthy Conservative majority, giving Mrs May free rein to take charge of Brexit negotiations.
However, others believe that a hung parliament increases the likelihood of a softer Brexit, which could be protect the pound from falling further.
