London stock market surges by £33bn after Conservative election win – business live

Shares and sterling are rallying as the financial markets react to the Conservative Party’s election triumph

5.53pm GMT

Sterling is ending the day with solid gains, although it’s not quite as rampant as 12 hours ago when this blog started.

Against the US dollar, the pound is worth $1.334, its highest level since March, and very nearly an 18-month high.

The clear majority that Boris Johnson achieved could give him more scope for getting an extension to the transition period agreed to. He would no longer be so dependent on the hard-line Brexiters and European Research Group. However, there is also the risk that Boris Johnson won’t want to extend the transition period given that his motto was “get Brexit done” and with such a solid majority he has a clear mandate to do just that.

Until we get further clarity on the transition period, the pound might struggle to advance beyond $1.35 in the short term. The start of the first half of 2020 could still see considerable uncertainty.

5.51pm GMT

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