In London, the FTSE 100 was up 1.64% at 6,999.77, with energy company Centrica (CPYYY) and financials including Lloyds Banking (LYG) and Royal Bank of Scotland (RBS) among the morning's top gainers. British sterling jumped to a two-month high against the U.S. dollar.
The equities buying spree followed a BBC projection that the Conservatives will take 331 of Parliament's 650 seats compared to 234 for the Labour Party, paving the way for Cameron to end the coalition with the Liberal Democrats and govern alone for the next five years. Polls as late as Wednesday had shown the two main parties in a dead heat, albeit short of an outright majority.
"This is clearly a very strong night for the Conservative party," Cameron told his home constituency early Friday. "I think it has a positive response to a positive campaign about safeguarding our economy, about creating jobs, about our record in government over the last five years but above all our plan for the next five years, based on clear values of wanting to reward work in our country, that those who put in and do their best should find the system is on their side."
In an initial post-election readout, independent London-based analyst and financial blogger Louise Cooper pointed to fears that Ed Miliband's Labour Party would have taken the U.K. back to the 1970s -- "not a great time for U.K. asset prices" -- with more state interventionist rhetoric on rent control and energy price freezes.