Walter Boettcher, Chief Economist at Colliers International says:
"Sterling may be down by 1 to 2% against the Euro and the USD, but the FTSE 100 is up by 1%, no doubt the result of sterling’s movement. Generally, the indicators are stabilising within the familiar trading range of the first half of 2017.
"In one sense, the result is disappointing in that another period of uncertainty and lack of political resolve will not help our market, with some political observers even suggesting that political machinations may result in another election in a few months’ time.
"In another sense though, the result may offer the prospect of a wider church where a broader democratic consensus on the UK’s negotiating stance on Europe may arise. The prospect of a more balanced national consensus and the likelihood of a ‘softer’ Brexit may explain the moderate financial market response to the election result.
"Meanwhile, interest in the UK market from foreign investors from outside Europe is likely to continue unabated as their motives are often shaped by events outside of the UK, especially long-term investors. Domestic investors have already been exercising caution and this will no doubt continue until the shape of the post-election settlement becomes clearer and stabilises.
"The headlines may become uncomfortable over the next few weeks, especially as the EU Council meets on the 22nd of June and were hoping to have begun serious discussions. It is hard to see how this will progress in the absence of a clearer mandate. It was already hard to see how the negotiations would progress given the uncertainty posed by the need of another Greek bailout in the summer and a German election in September. It looks to me like greater Brexit clarity will remain elusive until the EU Council meets on October 19th, unless of course we find ourselves in the midst of another general election.
"In short, it is looking like business as usual in the UK, or at least a post EU Referendum version of normality."