Confident of securing a sweeping victory, May had called the snap election to strengthen her hand in the European Union divorce talks.
Meanwhile, Labour leader Jeremy Corbyn said his party had "won this election" after its best vote share since 2001, at 40 per cent, fuelled by an extraordinary turnout of students and young supporters.
European Union leaders expressed fears that May's shock loss of her majority would delay the Brexit talks, due to begin on June 19, and so raise the risk of negotiations failing.
But her party is deeply divided over what it wants from Brexit and the result means British businesses still have no idea what trading rules they can expect. But Theresa May had a very stumbling election campaign, and that severely undermined her status of this strong and stable leader.
Unlike the American system, where one votes separately for president, senator and congressman, in the Parliamentary system followed by Britain, Canada and Australia, citizens only vote for their Member of Parliament; only her constituents voted for Theresa May.
If it weren't for the Scottish National Party's decline in popularity, which produced 13 new Conservative MPs in Scotland, the election would have been a rout for Conservative Prime Minister Theresa May, and we would likely see Corbyn moving into the prime minister's spot today.
'The mandate she's got is lost Conservative seats, lost votes, lost support and lost confidence, ' he said. "I would have thought that's enough to go, and make way for a government that will be truly representative of all of the people of this country". "A government that can provide certainty and lead Britain forward at this critical time for our country".
But her campaign unravelled after a major policy U-turn on care for the elderly, while Corbyn's old-school socialist platform and more impassioned campaigning style won wider support than anyone had foreseen. The pound lost more than 2 cents against the dollar within seconds of the announcement.
The day after the British elections, NPR.org showed considerably more interest in a candidate who ran dressed as a "space lord" than in the leader of the Labour Party.
Business and investors want clarity about the terms of Brexit as soon as possible, because they need to know what kind of access United Kingdom companies will have to Europe's vast free trading area in future.
Mr Corbyn would be unlikely to win backing for a minority government, but was clearly revelling in a storming performance after pundits had pronounced the Labour Party all but dead.
Manchester United hopeful of signing Alvaro Morata and Andrea Belotti
Despite rejecting United's recent £52m bid for the Spaniard, according to Lopez, Real have had a new deal presented to them. The Spain worldwide striker made 26 appearances in the league last season, scoring 15 goals and assisting five.
DUP Leader Arlene Foster recently denied the party was homophobic. How he would steer Britain through Brexit negotiations has not been explained in detail.
May's authority over her party was shattered by the election result.
The Conservative Party has been dependent on Irish politicians before. European officials are anxious that the weaker position of the Conservatives make a breakdown in negotiations more likely.
However it should be noted that minority governments can be a very good thing; they tend to force the government into positions of compromise and moderation.
The survey predicted the Conservatives will get 314 seats and the Labour Party 266.
British voters headed to the polls after May had called for general elections in April.
Conceding to her dashed hopes of a landslide win, May earlier said: "My resolve is the same that as it has been".
"May fights to remain PM", said the front page of the Daily Telegraph, while the Times of London said: "May stares into the abyss".
Newspapers reflected the drama, with headlines such as "Britain on a knife edge", "Mayhem" and "Hanging by a thread". It said Britain was "effectively leaderless" and the "country all but ungovernable". Her refusal to participate in debates against her opponents drew criticism across the aisle from constituents and analysts alike.
That did not help May, who in her previous role as interior minister for six years had overseen cuts in the number of police officers.
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