David Cameron's Conservative Party beat the polling odds to win a majority in the House of Commons today — and the City of London loved it.
The FTSE 100 opened up almost 2% on early signs that the Tory's would remain in power and closed up 2.32% at 7046.82.
The FTSE 250 also surged to a new record high of 18158.62, before settling back to close at 17935.93.
Companies in sectors that Labour had threatened to crackdown on such as gambling, outsourcing, banking and energy all rallied on news of a Tory government.
In the run up to the election Barclays identified a group of companies most at risk from a Labour government and pretty much all performed exceptionally today.
In the gambling sector Ladbrokes jumped over 9% and William Hill rose over 5%. In the banking industry Lloyds topped the FTSE 100, up over 5%, and Barclays was the second biggest riser gaining more than 3%.
G4S climbed 2.8% while fellow outsourcer Capita rocketed over 6%. And British Gas-owner Centrica climbed more than 7%.
As Labour's hopes dropped last night the Pound went soaring.
Sterling gained more than a cent against the dollar around 10pm last night after the BBC's first exit poll predicted a much stronger Conservative vote than had been forecast.
Demand for UK Government debt also picked up as the result became apparent. The yield on UK gilts, which moves inversely to price, fell across the board, with only 6 month bonds registering a rise in yeild.
The biggest drop was in 1 month bonds, where yields fell by more than 8%.
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