London stocks climb as Labour Party returns to power

(Reuters) – London stocks climbed on Friday after UK’s Labour Party surged to a landslide victory in a parliamentary election, bringing a sense of stability to investors who expect it to end years of market volatility.

The blue-chip rose 0.3%, after logging its best day in almost two months in the previous session, while the domestically focussed mid-cap was up 0.2% as of 0705 GMT.

The FTSE small cap was flat.

Keir Starmer was set to become Britain’s next prime minister, ending 14 years of Conservative government.

The pound held firm after the win, and was last up 0.1% against the US dollar.