FTSE rises as it opens to hung parliament

The FTSE rose 1.3 per cent minutes after opening this morning on news that the UK faces a hung parliament.

The positive move comes as sterling saw initial drops of 2 per cent against the dollar overnight.

The large-cap index has been strongly driven by currency moves since the UK’s vote last June to leave the European Union.

The FTSE 250 was down slightly by 0.35 per cent.

Banks and builders appear to have suffered from the result with Lloyds Bank falling 3.2 per cent, while RBS and Barclays suffered slightly smaller loses.

Taylor Whimpey lost 3.4 per cent, followed by Barratt and Persimmon, which also suffered loses.

Despite polls narrowing substantially over the course of the election campaign, a Conservative-led government was considered the most likely result from UK elections by markets.