UK stocks increased and the pound edged higher on Friday morning after the Labour Party's decisive win in the general election.

The FTSE 100 rose 0.4% at the open, while the FTSE 250 surged by 1.8%, reaching its highest since April 2022.

City analysts suggest that a clear Labour victory could stabilize British politics and attract global investors.

Housebuilders saw the largest gains, with shares in Persimmon and Vistry rising by around 3%, and Barratt and Taylor Wimpey up by about 2%.

The pound rose 0.1% to almost one dollar and twenty-eight cents.

Inflation has now returned to the government's 2% target, and the Bank of England may cut interest rates soon.

Investors are now keen to see Labour's plans for growth and public services.