What does the election result mean for Brexit?

The market was betting on Theresa May securing a significant majority, once again the market got it wrong. In the end investors had no special insight.

It has been as disastrous night for Theresa May.

A snap election designed to strengthen her grip on power has left her looking fatally diminished and her party scrabbling around for a coalition partner to stay in government.

The pound fell as soon as the exit poll was published but to $1.26 - that's more or less where it was on the April 18th when the election was called.

Theresa May, pictured on the campaign trail. Credit: PA

In Hong Kong, HSBC shares are down 1%, the grey market suggests the FTSE in London is expected to open down 20 - 30 points. A period of political chaos looms but market mayhem this is not.

Amid all of obvious uncertainty the most obvious question investors will be asking is where on earth this leaves Brexit.

Negotiations are due to start in two weeks' time and it's not at all clear that the Prime Minister who triggered Article 50 will be sat around the table.

The Prime Minister met with several European leaders at a summit in March. Credit: PA

What will the British position on immigration be now? Is control over borders still the priority? Are we still planning to leave the single market? Will Britain end up leaving the EU at all? What a mess.

This was Corbyn's night in so many ways but remember, the Conservatives are on course be the largest party in parliament with at least 50 seats more than Labour. As I write - at 5am - some form of coalition looks possible.

Of course if this picture changes significantly in the next three hours (and on such a night as this who can be sure of anything?) the City reaction may end up being far less sanguine.