"This is a major disaster for her personal authority over the country and the Conservative Party, particularly because she made this election all about her "strong and stable" leadership", Jane Merrick wrote for CNN.
Mrs. May faces strong criticism within her own party for her weak performance during the election campaign and for unwisely exercising her prerogative by calling for the election this year, after only two years of a five-year parliament.
Theresa May defeated her hard left Socialist opponent, Jeremy Corbyn, whose big government, high tax, heavy spending agenda promised to return the United Kingdom to the dark days of the 1970s, when Britain's economy was dubbed the "sick man" of Europe.
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Above all, investors are anxious about the general uncertainty surrounding the country - whether a bruised May will be able to govern effectively or whether she may eventually resign. Meanwhile a minority or Conservative-led coalition government may have to compromise on the pace of fiscal consolidation or specific policy measures to maintain parliamentary support (the reversal of proposals to increase social contributions for the self-employed in March's budget highlighted a degree of inflexibility in fiscal policy making).
"We are still in government and, after all is said and done, Labour were 50, 60 seats behind us. I would have thought that's enough to go." - main opposition Labour leader Jeremy Corbyn.
Britain has been plunged into political chaos after a shock result in Thursday's general election that saw the ruling Conservative Party's majority wiped out.
The last seat to be called in the election following three recounts, Borwick lost her seat to Labour's Emma Dent Coad by just 20 votes. But, instead, support for her party declined dramatically, leaving her government far more precarious than before. On the other hand, they've got enough problems on their plate already, and they do want to deal with Brexit.
There were upsets elsewhere in the UK: In Scotland. the Scottish National Party was on course for significant losses.