FTSE 100 rises and gilt yields soar as markets digest hung parliament news

Sterling down 2%

The UK's blue-chip index is up by 0.8% in morning trading, while the domestically focused FTSE 250 has lost ground and 10-year gilt yields have soared, as the market reacts to the shock hung parliament result of the UK General Election.

As at 8.46am, the FTSE 100 is up by 0.8%,to 7,510 points, with the majority of its members largely exposed to global markets and therefore benefiting from the falls in sterling. Meanwhile, the more domestically focused FTSE 250 has fallen by 0.7% to 19609, taking a hit from the falling currency. Sterling fell against the US dollar earlier in the mornign, following exit polls last night suggesting a hung parliament was the most likely outcome, and fluctuated throughout the night as incoming results went on to confirm the Conservative party had lost its majority. The pound is current...