The U.K.'s FTSE 100 posted stellar gains on Friday, topping the psychologically important 7,000 mark, buoyed by the unexpected results from the country's parliamentary election.
With investors traditionally cheering a lack of uncertainty, it was no surprise that risk assets were surging with the news that the U.K. Conservative Party will now lead the country's government for the next five years.
The U.K.'s FTSE 100 closed provisionally 2.3 percent higher at 7,046.82 on Friday as the results showed the Conservative Party managed to secure a majority, gaining the 326 seats needed to govern.
"The markets' reaction to the result has been predictably positive, with the pound being the initial beneficiary. Gilt yields have also fallen on the prospect of more austerity and a lower deficit while shares are rising, unsurprisingly led by house builders, domestic retail banks and regulated utilities and outsourcing companies. To put things into perspective, though, that still leaves the index below where it was a week last Tuesday," John Wyn-Evans, head of investment strategy at Investec Wealth & Investment said.