Market overview: Stocks surge on election results

1630: Close Stocks ended day sharply higher following the surprise win by the Conservatives. Various issues received a significant boost as traders readjusted their positions to the prospect that the current economic policy settings would be maintained and the implications that would have for those stocks. Above all, it was a story of less uncertainty in general and, hopefully, more stability going forward. However, there is now near certainty regarding a referendum on Britain's continued membership of the European Union. The question of further devolution of powers to the home nations is now also front and centre on the political agenda. FTSE 100 up by 159.87 points to 7,046.82. 1604: Tesco is planning to put its mobile business - which is potentially worth millions of dollar, on the block, the Financial Times reports.1514: HSBC raises Centrica price target to 300p from 240p on the reduced prospects for direct government intervention following the elections.1443: The yield on 10-year US Treasuries is down by six points to 2.13%.1330: US non-farm payrolls rose by 223,000 in April. The consensus forecast was for an increase of 220,000.1324: The yield on 10-year German bunds is now higher by two basis points to 0.61%.1219: Labour leader Ed Miliband resigns.1057: With Ukip's Nigel Farage failure to win a seat and as the Conservative party reaches 323 seats, the magic number for a working majority when the speaker and others are discounted, the FTSE 100 is up back over the bullish psychological level of 7,000. The blue chips index is up 129 points or 1.87% to 7,015.88 points. However, despite Ukip only winning 1 seat, it has 12.3 of the national vote share and so the risk of a Brexit post a EU referendum rumbles on in many traders' minds. A note from Nomura says the UK election results are clearly positive for the pound, but mid-term risks remain, with Brexit chief among them.0930: Company news today includes Rolls Royce maintaining its full-year guidance but warning over currency hit to revenue, BG Group's first quarter earnings hit by depressed oil and gas prices, JustEat to acquire market leader in Australia and New Zealand, Man Group retaining caution on first-half flows, BBA Aviation trading in line with its expectations and InterContinental Hotels' revenue growth being hit by the stronger dollar.0910: Lloyds is up almost 7% as the Conservative party looks on course to form a small majority. This means there will be no change to plans to sell the government's remaining 22% stake in Lloyds to smaller investors rather than favouring institutions. Mike van Dulken, head of research at Accendo Markets, said the plans for a Thatcher-style privatisation discount "will please investors looking to get back into the recovery story, as will the absence of meddling in the recent reinstatement of dividends after a period of austerity- and bailout-forced absence". Peers Barclays and RBS also benefiting from a continuation of the City-friendly Tory government, with housebuilder Berkley and estate agent Countrywide leading the FTSE 100 risers. Many companies who were expected to have faced tougher regulations under a Labour government are on the rise, including British Gas owner Centrica and engineer Babcock, which holds a contract to build Trident submarine. A note from SocGen says the Conservative victory will provide "relief to utilities", while0847: Stocks have begun the morning sharply higher as the voting projections showing a majority for the Conservatives continue to filter in. Financials and homebuilding stocks are doing best in the early going. Sterling registered sharp gains overnight with Gilts also well supported. The yield on the 10-year Gilt is now down by seven basis points to 1.86%. In particular, it must be pointed out that the Tory win virtually assures that a referendum on continued membership of the European Union will take place. As well, focus will now turn again to Scotland and the upcoming negotiations on further devolution. FTSE 100 up by 119.01 points to 7,006.05 and FTSE 250 by another 3562.76 points to 18,010.72