Financial markets enjoyed a relief rally and sterling edged off 31-year lows as investors emerged relatively unscathed after being ravaged by the worst rout in history.

Bargain hunters scrambled for Brexit battered stocks as risk appetite returned despite continued uncertainty about Britain’s vote to withdraw from the EU.

The FTSE 100 posted its biggest one-day gain in four months, climbing 158.19 points, or 2.64pc, to 6,140.39. A closer barometer of the UK economy, the FTSE 250 index, bounced back 3.6pc after plunging 14.2pc in the Brexit aftermath.