Pound’s dive sees Footsie head higher

The FTSE 100 climbed higher following the shock general election result as the pound suffered losses against both the dollar and euro.

London’s top flight index ended the day up by more than 1 per cent, or 77.35 points, at 7,527.33 as investors digested news that Theresa May’s Conservatives had fallen short of an overall Commons majority, resulting in a hung parliament.

Michael Metcalfe, global head of macro strategy at State Street Global Markets, said: “Markets were poorly prepared for this surprise result in the UK.

“The approach to the potentially larger and more dangerous hurdle of Brexit will now surely be delayed. It is a shock that markets were not well prepared for, and in response sterling is likely to remain under pressure.”

Markets had priced in a healthy Conservative majority, giving May free rein to take charge of Brexit negotiations unhindered.

However, others believe that a hung parliament increases the likelihood of a softer Brexit, which could be supporting the pound and preventing it going into freefall.

Miners were among the FTSE 100’s biggest risers, thanks to earnings made in US dollars, with

Fresnillo rising 60p to 1,725p, and Antofagasta up 28p to 825p – or more than 3.5 per cent each.

Shares in housebuilders, which are more domestically focused, ended the day lower. The prospect of a property market slowdown, compounded by the latest reports pointing to falling prices and buying activity, pushed Taylor Wimpey down 3.2 per cent or 6p to 177.5p. Barratt

Developments also dropped 13.5p to 576.5p.