But the law can be overruled if two-thirds of lawmakers in the British parliament vote in favour of early elections - and main opposition Labour leader Jeremy Corbyn said yesterday he would back May's call.
The FTSE s dive was its biggest one-day fall since past year s referendum vote to leave the European Union.
Turning to the Brexit process, Hollingsworth said it would deliver a stronger mandate to May but did not make the likelihood of a "Hard" Brexit completely clear-cut.
At present, May's governing Conservatives have a small majority, with 330 seats in the 650-seat House of Commons.
Two Labour MPs have said they will not contest June's snap general election as the party faces the possibility of its worst general election result since before the Second World War.
May triggered a two-year countdown to Britain's exit from the European Union last month, and high-stakes negotiations to settle divorce terms and agree on a new relationship are expected to start within weeks.
There can be little doubt over why the Prime Minister has called a snap election despite repeatedly stating she would not.
Negotiations with other European Union nations are not due to start until June meaning the election will probably be over and a new government in place before any serious talking gets under way in Brussels.
It is an about-face from May's earlier statements about an early election, but it is hard to blame her for wanting to go early.
Brits will head to the polls in June after Prime Minister Theresa May announced a snap election overnight.
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Downing Street's calculation is likely to be that she will get enough media coverage to make her case to voters without taking the risk of going one-on-one with rival leaders. They know the game and they know she's played it well - and that they'd probably have done the same in her position.
In a speech outside Downing Street, Prime Minister Theresa May said: "I have just chaired a meeting of the Cabinet, where we agreed that the Government should call a general election, to be held on June 8".
"Consumers' purchasing power is being ever more squeezed by rising inflation and muted earnings growth - and the squeeze seems highly likely to deepen over the coming months".
In a recent ICM poll, only 13 per cent of Britons thought Corbyn was doing a good job as leader - including just 37 per cent of Labour voters.
East Midlands Chamber chief executive Scott Knowles said the election "appears to be creating uncertainty in already uncertain times".
Rather than helping the country unite, the election could widen divisions within the United Kingdom.
Scottish First Minister Nicola Sturgeon, the leader of the pro-independence Scottish National Party which has 54 of 59 Scottish seats in the Commons, said May was making a "huge political miscalculation".
"I think people will judge Theresa May's decision today on the basis that she's looking after her own interests than actually the interests of the people in this country".
Nonetheless, the party says it has a war chest, that it is prepared for an election, and that it will present an "alternative" government to the Conservatives. The government's current working majority is only 17 seats.
Sterling rose to a four-month high against the USA dollar after the market bet that May would strengthen her parliamentary majority, which Deutsche Bank said would be a "game-changer" for the pound.