Meanwhile, one analyst forecast a much brighter outlook for the U.K. economy and suggested a hung parliament could even be a blessing in disguise.
“The negative sides of the U.K. story are constantly and very loudly put but actually, look at the fundamentals…,” Stephen Jones, chief investment officer of Kames Capital, told CNBC.
Jones explained it would not be wise for investors to dismiss record low unemployment levels in the U.K., as well as consecutive quarters of economic growth, in light of the election result.
“We do have a bit more uncertainty but we have also got a situation that probably doesn’t allow anybody to do anything terribly daft. We have a difficult negotiation to come but that will be done in a more pragmatic, consensus-based way involving more people,” Jones added.