>> London traders arriving at their desks to an election shock Friday. Prime Minister Theresa May's conservative party losing its parliamentary majority, plunging the country into political chaos. Sterling spiraled, dropping as much as 2% against the dollar. Reuters markets columnist, Jamie McGeever, says investors want certainty, even if it's a position they're not particularly comfortable with.
>> This election has often anything but certainty, you could argue it's been pretty chaotic and ugly. For the next few months It remains very chaotic on the political front. We've got the Brexit negotiations which are supposed to start on June 19th, a matter of days away Who will be prime minister?
Theresa May has not resigned but her position is extremely weak. She's a laying duck prime minister to be frank.>> The margins of other moves are narrow. The FTSE 100 up around half a percent, similar to a normal day's trading. The lower pound's benefiting the multinationals and exporters that make up the bulk of the UK blue chip market.
However, the FTSE 250 which is made up of more domestic focused companies, is down around half a percent. The spillover seems to be very UK specific, reactions in other major currencies, such as the dollar, euro, and yen were limited. The impact nothing like that of the Brexxit referendum last year, when sterling had its biggest fall on record and volatility soared.
>> We're not talking about that kind of volatility and uncertainty, but relative to where we might have been a few months ago. Certainly relative to the strong and stable government we were led to believe was gonna be ushered in. That hasn't happened, and so we are where we are in terms of slightly more volatile markets
>> Among the big questions for markets now, what will this mean for Brexit? Will it be harder, softer, or maybe slower? Right now, no one knows and that is exactly what traders don't like.