This morning the FTSE 100 has gained more than 1.5% as the news that David Cameron should remain as Prime Minister hits desks.
The BBC has forecast that the Conservatives will be able to command a majority.
The election results are due to be clearer than expected which is boosting investor confidence and bank shares are enjoying a relief rally as a result.
The financial firm UBS wrote “It appears that we will avoid weeks of uncertainty and horse-trading as there is the ability for the Conservatives to form a government perhaps relatively quickly.”
The British pound is now trading close to a 2 month high against the USD helped by the governmental consistency which is being projected. Britain's currency spiked against the American dollar to reach $1.54, while Sterling also increased by 2.5 per cent against the euro to €1.37.
