UK Markets Breathe A Sigh Of Relief

In the early hours of Friday's trading, UK's FTSE gained 1.7 percent after the region's elections ended with a victory for Prime Minister David Cameron and the Conservative party.

In the lead up to the election, polls showed that UK's two main parties, Labour and Conservatives, were unlikely to gain a majority, which could have led to a messy outcome from Thursday's vote.

However, it appears the Conservatives will go it alone as the BBC reported that the party is on track to win a narrow majority in parliament.

Still Some Uncertainty

While Cameron's victory sent the pound 1.3 percent higher overnight, some analysts caution that the UK's uncertainty isn't over yet.

While the surprisingly decisive election was positive for the region, Cameron's promised referendum on the UK's membership in the European Union is likely to add some volatility later down the road.

Polls show that most British citizens see benefit in remaining a part of the EU, but in the lead up to the referendum vote markets are likely to experience some turbulence.

Tension In Scotland

In Scotland, the vote ended with the Scottish National Party winning a sweeping majority, but the Conservatives' victory is likely to keep the SNP from making any real changes.

Some analysts say this could be cause for concern as it may reignite Scotland's calls for independence. Last year Scotland held a referendum vote, but the majority elected to remain a part of the UK.