quest big red bus
Britain's election night from #BigRedBus
02:45 - Source: CNN

Story highlights

It means the possibility of an exit from the EU

It means fears of a fractured country

CNN  — 

Oh, how analysts worried ahead of UK elections.

They were certain voters would fill Parliament with extreme political factions making it tough to form a new government, much less keep one together.

They feared the election would reshape Britain’s global role, having ripple effects around the world.

But Britons have bedeviled expectations. There will be no changing horses in mid-stream.

Prime Minister David Cameron arrives in London with his wife Samantha

Prime Minister David Cameron is poised to retain his office at 10 Downing.

What does the UK election results mean for the rest of the world?

It means stable global markets … for now

Markets love political steadiness. And it showed Friday. The British pound was rising versus all major global currencies and the U.K.’s main stock market index jumped by 2% in early trading.

“It averts the risk of a tilt towards leftist policies under a Labour government relying on (Scottish National Party) support,” Berenberg chief economist Holger Schmieding said.

Cameron is credited for Britain’s recovery from recession: The U.K. enjoyed the fastest growth of any major developed economy last year, and unemployment has fallen rapidly.

“There is one elephant in the room and that is the EU referendum,” said Tim Besley, professor of economics at the London School of Economics.

It means the possibility of an exit from the EU

Who hasn’t heard the term “Grexit?”

It refers to the possibility of Greece getting out of the Euro as a result of its disastrous economy. That could take a wrecking ball to Europe’s financial markets, worst-case analyses have said. Europe’s economy could hit the skids, and the U.S. economy would follow.

Now, with Conservatives, also called Tories, gaining even more power in the UK, enters the possibility of a “Brexit.” Even though Britain does not use the Euro, it would be a much, much bigger wrecking ball.

Prime Minister Cameron has promised the country a referendum in 2017 on whether to stay in the European Union or to exit out of it.

“It’s hugely risky,” said British political analyst Robert Hazell.

Cameron has a reputation as a moderate conservative, but much like Republicans in the United States, he has his own version of the Tea Party.

Ultraconservatives want out of the European Union, Hazell said. “I’m sure that Cameron would like Britain to remain within the EU, but the rebels will hold his feet to the fire.”

The referendum will happen, he believes, and the results would be unpredictable.

It means fears of a fractured country

Speaking of referendums, many Scots want to split from Britain and tried to with a vote last year. It failed, but the sentiments showed up big in Friday’s vote.

The Scottish National Party swelled from a cottage party to the third largest elected power in parliament. “The Scottish lion has roared this morning across the country,” said former SNP leader Alex Salmond.

Scots have traditionally found their political home in Britain in the center-left Labour Party, which took huge losses in the vote, as Scots looked for a voice of their own.