Donald Trump's shock US presidential win triggered a tumultuous day's trading on global markets, with London's top flight sinking more than 2 per cent before rebounding into positive territory.
The FTSE 100 Index closed up one per cent, or 68.71 points to 6,911.84, after dropping more than 140 points at the start of the session when investors were forced to issue a sharp correction after pricing in a Hillary Clinton victory.
European markets also finished the session higher, as the billionaire tycoon's acceptance speech helped soothe investor fears over the economic impact of his policies.
Germany's Dax closed up 1.6 per cent, while the Cac 40 in France rose 1.3 per cent.
US markets also proved resilient in the face of the landmark result, defying expectations of a sharp slump.
The Dow Jones Industrial Average and the S&P 500 were 0.8 per cent higher, while the technology-focused Nasdaq Composite index rose 0.4 per cent.
However, Asian markets – which took the biggest hit from the result – were rooted in the red, with Japan's Nikkei 225 index closing more than 5 per cent lower and Hong Kong's Hang Seng Index dropping around 2 per cent.
Mr Trump's trade policies remain a concern in the Far East after he previously voiced opposition to the Trans-Pacific Partnership and threatened to impose punitive tariffs of 45 per cent on Chinese goods entering the US.
On the currency markets, the pound climbed 0.8 per cent against the US dollar at $1.248.
The greenback endured choppy trading, weakening on fears that Mr Trump's victory could delay the US Federal Reserve from hiking interest rates next month.
Jasper Lawler, market analyst at CMC Markets, said the "much-feared" election of Mr Trump had not triggered the "one-way negative reaction" from the markets.
"Things are never black and white and Donald Trump can be a positive force, or at least a less negative force than Hillary Clinton, for some sectors of the stock market.
Mr Trump's stunning victory spurred investors towards safe-haven assets such as gold, which rose 0.8 per cent to around US$1282.27 an ounce.
