Shares jump and pound stages biggest rally in almost three years on Tory victory

Markets welcome greater certainty over Brexit as sterling surges to $1.34

The pound staged its biggest rally in almost three years and shares surged after the Conservative party secured a decisive victory in the general election.

Sterling jumped more than 3 cents against the US dollar to $1.35, marking its highest level since May 2018 and its biggest rise since 2017. The gains were later trimmed to 2.5 cents, at $1.3414. The pound also rallied strongly against the euro to a1.20, hitting a high not seen since shortly after the EU referendum.