Theresa May’s Conservative party may have lost its majority in the British Parliament, ceding big gains to Jeremy Corbyn’s Labour party, according to an exit poll Thursday night.

Conservatives remain the largest party in Parliament, but the British pound dropped sharply immediately after the poll results were released.

If the exit poll proves correct, the Conservatives would have 314 seats, Labour 266, Liberal Democrats 14, Scottish National Party 34 and other 22.

326 seats are required for a majority.

A hung parliament would be significant because it means that multiple parties have to hammer out a coalition government.

Investors have been especially worried about a coalition government because of tough Brexit negotiations looming with the European Union — passing legislation can be a difficult process with two parties with their own political priorities.

The pound hit a low of $1.2704, its lowest level since April 18, when sterling traded as low as $1.2513.

On April 18, May surprised onlookers by calling Thursday’s snap election stating that “division risks the ability to make a success of Brexit.”

At that point the Conservative ruling government was polling as much as 22 points clear of the main opposition Labour party led by Jeremy Corbyn. However, as the campaign progressed the polls narrowed sharply.

Polling stations opened at 7:00 a.m. London time Thursday and closed at 10:00 p.m. The main flurry of results are expected from 2.00 a.m. London time on Friday and there are 650 constituencies due to announce.

The Conservative campaign has attempted to focus on the withdrawal from the EU, repeating a mantra that only it can offer a “strong and stable” government as negotiations with Brussels heat up. This strategy has worked to an extent with polls on leadership consistently backing May over Corbyn as a more trusted leader.

Labour’s Jeremy Corbyn has said he will honor Brexit but at the same time attempt to retain the benefits of the single market – a tariff free trading bloc for members of the European Union.

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