The results mean that May must try to form a coalition government with one or more of the smaller parties in Parliament. This is where a cabinet is sworn into office despite not commanding a majority in parliament. "If she has an ounce of self-respect, she will resign".
The past year has seen plenty of surprises in Western politics following presidential victories for Donald Trump and Emmanuel Macron in the United States and France respectively, while it is nearly 12 months since Britain voted in favour of exiting the European Union. The British pound lost more than 2 cents against the dollar in initial trading as results became clear.
"On balance, the financial markets and the private sector would have preferred a Conservative majority to a Labour majority. and they definitely prefer stability to instability", said Tony Travers, director of the Institute of Public Affairs at the London School of Economics.
The latest BBC forecast puts the Conservatives on 319 seats, eight fewer than needed for a majority in the 650-member parliament. The Conservatives, as projected, are the largest party, winning 319 seats in the House of Commons.
While the Conservative party came first, it lost its parliamentary majority, and is now set to secure the support of Northern Ireland's Democratic Unionist Party (DUP) and its 10 seats to push it over the line. However, the DUP appear to have given May assurances that they will support May's legislative agenda, while not officially working to shape it.
May had hoped to build a stronger majority to help her in Brexit negotiations.
European Union budget commissioner Guenther Oettinger said the European Union is prepared to stick to the timetable that calls for negotiations to start in mid-June, but also said: "Without a government, there's no negotiation".
Such polls have generally been reliable, although political leaders on both sides immediately said it's too early to read too much into it. "I expect more uncertainty".
EU President Donald Tusk urged Britain not to delay the talks, due to start on June 19, warning that time was running out to reach a divorce deal to end four decades of membership.
Accuser gives emotional testimony in Cosby trial
On Wednesday, Agrusa was trying a different tack, implying that Constand and Cosby's relationship had been romantic in nature. Agrusa suggested that Constand once enjoyed a romantic dinner by the fire at Cosby's home before the alleged assault.
May, who took over after the June 2016 Brexit referendum, began the formal two-year process of leaving the European Union on March 29, promising to take Britain out of the single market and cut immigration. Since the UK's vote past year to exit the European Union - the smooth process of which was the main reason given by May for calling the election seven weeks ago - the pound is now 13 per cent lower against the euro and 14 per cent against the United States dollar. "Instead of strong and stable leadership we witness chaos and uncertainty", he said, mocking May's campaign slogan.
"Doing what is in the national interest", May continued.
Why is May likely to opt for a minority government rather than a coalition? . "At any point a tiny number of either Conservative or DUP MPs could say: "we won't put up with this" he says. "Our leader needs to take stock as well".
Corbyn, who one betting firm has as favourite to be the next Prime Minister, said in an interview with Sky this morning that he was "ready to serve this country".
Labour supporters campaigning in Amsterdam before the vote. The overall turnout was 68.7 percent - the highest since 1997.
"The Prime Minister called this election because she wanted a mandate".
Corbyn said May should "go and make way for a government that is truly representative of all the people of this country". While May could still win a majority, attention will turn to her future after the decision to call an early election and strengthen her mandate backfired.
As she was resoundingly re-elected to her Maidenhead seat in southern England, May looked tense and did not spell out what she planned to do.
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