Image source, Reuters

The chief executive of Legal & General, Nigel Wilson, has said there is a "wall of money" wanting to invest in the UK, dismissing claims that uncertainty over future trade deals after Brexit would deter investors from putting their money into the country.

"We've had three and a half years to prepare for Brexit," he told the BBC, adding: "It's a pretty poor show if we haven't prepared."

He said demand in the UK had held up but warned the country had lacked investment for more than 30 years.

Image source, Getty Images

Stephen Jones, boss of banking trade body UK Finance, echoes the sense of relief that's been drifting through several industries this morning.

“After months of stagnation and political impasse, the prime minister has been given a clear mandate," he said.

But he added that the real work begins now.

"There are many shared challenges that the government and business must work together to address.

"From ensuring a just transition to a carbon-neutral economy to tackling the growing threat of fraud and economic crime, it is important that progress is now made to address these issues."

Image source, Reuters

Michael Hewson, chief market analyst at CMC markets, sees the rally in the FTSE 100 as "incredible" given the rally in the pound.

"The FTSE 100 and FTSE 250 have seen a new lease of life this morning, surging in early trade as the various nationalisation discounts that have been in place since 2017 start to roll-off for companies that have found their valuations depressed by concerns over government appropriation, in the event of a Labour win. There are also expectations that we could see a fiscal stimulus unlocked in 2020.

"It’s a sea of blue for the FTSE350, with early gainers across all the major sectors with big percentage gains of 10% or more for companies like Stagecoach Group and Serco, while on the construction and house builders sectors we’re seeing big gains for Galliford Try, Balfour Beatty, Berkeley Homes, and Persimmon. Retailers are also surging with Dunelm and Marks & Spencer notable beneficiaries, while Royal Bank of Scotland [is] also surging.

"This is [an] incredible reaction given the rally in the pound as well, but it also speaks to the relief of a pressure valve being released as money flows back into UK assets, now that the risk of a Labour government has been comprehensively dispatched".

The FTSE 250 index - focused on more domestic companies than the FTSE 100 - has reached a record high after its surge in early trading.

It is currently up 4% - or 846 points - at 21,639.70.

The FTSE 100 index has not rallied as much but is up 1.5% - 107 points - at 7,380.49. It is being held back by sterling's rally as many companies in the index make their profits in dollars.

Image source, Getty Images

So, the stocks falling on the stock market are largely those which generate profits in dollars.

For instance, pharmaceutical company GlaxoSmithKline and drinks group Diageo are off 2%. AstraZeneca, Shell and Standard Chartered are also lower.

Image source, Getty Images

Shares in Asia have registered strong gains as a preliminary US-China trade deal could be confirmed later in the day, after US President Donald Trump reportedly signed off on the terms.

Japan's benchmark Nikkei 225 closed 2.55% higher, the Hang Seng in Hong Kong is 2.35% higher, while China Shanghai Composite is up by 1.78%.

Simon Jack
BBC Business Editor

Politically-sensitive shares have rocketed in response to that decisive Tory election win.

Shares in water companies like Severn Trent - which faced the possibility of nationalisation under a Labour government have shot up 10% - while UK housebuilders beat that with a massive 14% gain for Persimmon.

Two things seem clear: The possibility of a Jeremy Corbyn government had not been dismissed by investors while a UK government with a proper majority is a boost for UK-facing companies.

Banks, retailers, housebuilders and the utilities - which faced nationalisation under the Labour Party - are all higher in early trading.

A quick selection: Royal Bank of Scotland and Lloyds Banking Group are up more than 10% while Virgin Money has gained 17%.

House builders Travis Perkins and Crest Nicholson are up more than 15%.

BT and Centrica are up 9%

The FTSE 250 index has jumped more than 2% as the London stock market opens.

The FTSE 100 index was down but has started to move higher, up 0.5%.

Simon Jack
BBC Business Editor

Image source, Getty Images

The financial bookies had already installed Boris Johnson as the favourite but did not expect him to romp home by such a distance.

The pound moved sharply higher as soon as the exit poll was published and went on to post one of its biggest one day gains against the dollar in nearly three years.

Ian Tew, sterling trader at Barclays told the BBC that Johnson’s decisive victory had “removed a layer of uncertainty”.

That is well put. There are many other layers for the markets to now focus on. The challenge of completing a trade deal with the EU by this time next year is formidable and traders on the Barclays floor are already muttering about the prospect of a new Scottish independence referendum.

Markets have given the prospect of a government with a functioning majority a round of applause but at time of writing the value of the pound is already beginning to retreat from the highs it hit overnight.

Image source, ADS

Paul Everitt, chief executive of the ADS, the UK trade organisation representing the aerospace, defence, security and space sectors, says he looks forward to working with the government to ensure the UK aerospace, defence, security and space industries "remain global leaders at a time of significant change".

"A close partnership between government and industry is essential to secure sustained long-term growth in our strategic industries.

“We must deliver a close future relationship with the European Union, boost investment in innovation and green technologies, develop a defence and security industrial strategy and an ambitious national space programme.”

Image source, PA Media

Lawyers at Herbert Smith Freehills have been looking at the election result and say it will "be interesting to observe how investors respond now that nationalisation risk has dissipated".

Labour had proposed a programme of nationalisation that would bring the Royal Mail, rail-operating companies, energy supply network and water and sewerage companies into public control.

"Although a Conservative victory means the immediate threat of nationalisation of UK utilities has receded, the drivers behind the popularity of these policies remain to the fore. Investors and operators alike will remain focused on policy developments particularly around price controls in the coming months," said Gavin Williams, partner in the firm's corporate practice.

The head of the trade body formerly known as the EEF, adds: "The first job is the urgent need to begin negotiations on our future trading relationship with Europe, cementing frictionless trade, access to key skills, regulatory alignment and space for business to prepare for new arrangements.

"Manufacturing exports are one of the powerhouses of our economy and we must allow them to flourish.

“At the same time we call on the prime minister to set out a vision for the future of our economy which allies a re-invigorated plan for modern industrial transformation and growth with how we are going to tackle the immense societal challenges such as digitisation and climate change."

Boris Johnson is speaking and begins his speech by saying "we pulled it off" and "broke the deadlock".

He pays tribute to colleagues that lost seats but congratulates the party on its biggest majority since 1980s.

The country will now be able to "get Brexit done," he says, to cheers from the audience.

There are live updates on this BBC page.

Reuters has some statistics on sterling's move since that exit poll.

It's up more than 2% against the dollar, reached a 19-month high against the dollar and at its highest level against the euro since just after the 2016 referendum.

The gain is the biggest in nearly three years and, according to Reuters, "a remarkable gain for a currency that has become extremely volatile since the referendum".

The chart shows the pound against the dollar over five years.