The exit of Britain from the EU on January 31 has been a predictable result. Now investors are concerned about whether Johnson will abide by his campaign promise to reach a new trade agreement with the EU as scheduled by the end of 2020.
It is generally believed that it is quite difficult not to exceed the deadline, because there are still a lot of problems to be solved.
The victory, Johnson's Conservative Party's biggest since the victory of former Prime Minister Margaret Thatcher in 1987, has also removed one of the major obstacles to economic growth: the ongoing debate in parliament over how, or even whether, to move ahead with brexit.
In Friday's victory speech, Johnson said that Britain would withdraw from the EU on January 31, "no if, no but, no possibility".
His election victory also dispelled the prospect of a sharp left turn under the leadership of the labour party. Many business leaders are worried by Labour's commitment to nationalize some industries, empower trade unions and give governments a greater role.
"For brexit, all this means that Johnson's exit agreement will be approved, which is likely to lead to brexit at the end of January," ing analysts said in a report to clients
"But more importantly, it could give the prime minister political breathing space to ask for an extension of the transition period."
The pound rose the most in nearly three years after an export poll showed the Tories would win a clear lead, with shares of companies that rely on the UK's domestic economy rising.
Investors have lowered their bets on the Bank of England's rate cut, at least in the short term, as uncertainty about the UK's economic outlook has declined.
Growth in the world's fifth largest economy has slowed since Britain voted to leave Europe nearly three and a half years ago.
In the long run, leaving the EU, which accounts for nearly half of the country's exports, will drag down its economic growth.
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