FTSE 100 skyrockets and pound rallies as markets react to Labour Party's landslide victory

Among individual stocks, Persimmon is 25p higher at 1457p with NatWest up at 327.1p and British Gas owner Centrica ahead by 0.9p to 141.3p.

Furthermore, the British pound has lifted against the US dollar and Euro with sterling jumping 0.1 per cent to $1.278, which is the highest it's been since the middle of June.

This was up 0.01 per cent at €1.180 euros as the global markets woke up to Sir Keir Starmer's party returning to Number 10 Downing Street.

Overall, the pound has held steady in overnight trading after initial exit polls gave an indication as to the extent of Labour's lead.

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Many analysts had already priced in a massive victory from the party into the financial markets.

Prior to markets opening, traders had expected the FTSE 100 index to edge higher.

Reacting to his win, Starmer claimed that change "begins now" in an "age of national renewal" while speaking to members of the eletorate.

The country's new Prime Minister elect asserted the Labour Party will “start to rebuild our country”.

Housebuilding stocks rallied in particular in reaction to the Labour Party's historic win.

Richard Hunter, head of markets at Interactive Investor, outlined why this may be the case.

He explained: "One sector set to benefit from the new political regime is housebuilding, which has seen some recent strength on hopes of reforms, less red tape in terms of planning and more supply.”

Hunter noted that the FTSE 100 is currently ahead by seven per cent for this year.

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At the same time, the FTSE250 has gone by five per cent, having been in a negative position for a couple of months.

Daniele Antonucci, chief investment officer at Quintet Private Bank, said: “Labour’s policies should be neutral for the UK’s long-term economic growth.

"In general, in the near term, we’d expect somewhat firmer support for consumer spending. Taken at face value, this would imply modest upside pressure on wage growth and, therefore, inflation,” he said.

“Labour’s pledge to introduce a ‘genuine living wage’ potentially points to further hikes in the National Living Wage, but the magnitude remains quite uncertain.”