Pound sinks but FTSE 100 climbs after shock election result

Concerns over Brexit and economic outlook push sterling to lowest level since Theresa May called snap poll

The pound slumped and shares in major banks, housebuilders and construction companies tumbled after the shock election result raised questions over the pace of Brexit talks and prospects for the UK economy.

Sterling fell 2% to $1.2670 while shares in Lloyds Banking Group were down, along with those in Royal Bank of Scotland and the housebuilders Barratt and Taylor Wimpey. Shares in the fashion retailer Next were also lower on fears that consumer confidence would take a knock.

Related: Pound tumbles but FTSE 100 rises as hung parliament spooks the City - business live

Related: Business Today: sign up for a morning shot of financial news