FTSE 100 jumps 2% as Brexit bounceback continues – business live

Stock markets in Asia and Europe are recovering, despite the massive uncertainty caused by last week's EU referendum

• Latest: Markets rally despite Brexit fears
• Pound up, but more volatility expected
• Introduction: Markets recovering in face of political crisis

10.55am BST

Atradius, which provides credit insurance, has predicted that the Brexit vote will wipe out some businesses.

In a new report, it predicts:

10.39am BST

The Brexit crisis is looming over UK bankers as they gathers for a conference in London.

City minister Harriet Baldwin told the British Banking Association's event that London's financial sector will survive:

"We shall overcome" City minister, Harriet Baldwin tells @bbavoice that London will survive as financial centre pic.twitter.com/3ztQtl4jrB

"The City of London will be diminished" Bisseker says. "People will care when it hits them". 15% fall in UK house prices "not unrealistic"

Banks' earnings to lose 25/30pc as result of brexit according to schroder's Justin bissiker. #BBARetailConf

Goldman and Morgan stanley have pre-rented offices in Frankfurt as contingency if cannot get right deal for London #BBARetailConf is told

10.26am BST

Analysts at Citi are speculating that last week's vote may not be the end of the matter....

Credit Suisse sees a 30% chance of a 2nd referendum pic.twitter.com/ep89vRMr9P

10.24am BST

Joshua Mahony, market analyst at IG, says today's rally is a surprise - some in the City had expected heavy losses after the Brexit vote.

A disconnect is appearing between the pessimistic mood that is permeating the media and the insatiable optimism that seems to be driving yet another day of gains in the FTSE100. For many, the widespread selling that dominated the financial markets in the immediate wake of Friday's referendum result was expected to persist, providing one of the deepest corrections for years.

However, there is a confidence within the City that perhaps the implications to this vote may not be as immediate nor far reaching as many initially thought, providing opportunities for bargain hunters to grab shares at a discount.

This Is What The 27 EU Leaders Will Say About Brexit https://t.co/WJtwSxJ3X2 - we've seen the draft EU27 conclusions. #EUCO

10.09am BST

Shares in London are climbing steadily this morning.

"Stocks and the pound are continuing to firm but the post-Brexit reality will bite sooner or later.

What we're seeing in the FTSE is hope in Britain being able to ride it out by remaining part of the single market. This looks like wishful thinking.

9.46am BST

Greene King, the pub chain, has warned that consumer spending will probably suffer as Britain falls deeper into Brexit uncertainty.

CEO Rooney Anand has told the City that:

"The increasingly uncertain trading environment is likely to weigh on consumer sentiment in the near term."

Related: Greene King profits rise as it warns EU vote will hit consumer spending

9.34am BST

Just in: British consumer credit has expanded at the fastest annual pace since 2005 in May, in the run-up to last week's referendum.

9.29am BST

Telegraph business editor Ben Wright explains why Brexit could be such bad news for the City, and thus the rest of the UK:

LSE boss @xrolet has said he thinks 100k City jobs could go post-Brexit. That would mean 10bn in lost tax and 32.5bn in lost output.

9.18am BST

The recent stabilisation in the value of the pound is unlikely to last, warns currency expert Jane Foley of Rabobank.

Speaking on Bloomberg TV, she warns that the current Brexit uncertainty is bad for investment and bad for UK businesses, and thus not great news for the national currency.

"We have political uncertainty and probably recession - that isn't something that sterling should celebrate....

Sterling faces a huge amount of volatility, and we possibly haven't seen the lows yet."

9.01am BST

Finland's former finance minister, Alex Stubb, has experienced plenty of European rough-and-tumble .

He reckons Brexit is currently in the 'chaos' phase, but will eventually move forwards...

Reminder of how the EU advances:
1. Crisis
2. Chaos
3. Sub-optimal solution
In #Brexit we are now in phase 2. Will take a while to get to 3.

Accurate, but misses:
* Legacy of 3s feeds into each successive 1.
* Pattern may break if multiple/simultaneous 1s. https://t.co/Nu4JTlLpzh

8.49am BST

Mario Monti, the former European commissioner (and one-time technocratic Italian PM), has warned the UK it can't get access to the single market without accepting the free movement of people:

Can UK ever do a #Brexit deal where they keep free market access but limit movement of people? "No" says Mario Monti pic.twitter.com/e8BklgN7c5

8.49am BST

Our Politics liveblog is tracking the fallout from last night's EU summit meeting, and the race to become Britain's next prime minister.

Related: Brexit live: 'sad' Cameron says EU must deal with immigration concerns - latest news

Related: The Guardian view on Jeremy Corbyn: after the experiment | Editorial

8.41am BST

The UK car industry is hoping that Britain retains access to the European single market.

A new report shows that the industry enjoyed a record year, partly due to the ability to sell vehicles without tariffs across the EU.

Related: Access to single market led to record UK car production, says report

8.33am BST

Life is continuing in Brussels without the UK today, as the other 27 leaders sit down sans Cameron.

Tusk @eucopresident has rung the bell to start first informal #EU27 meeting

Historic moment. British absent at EU's top table this morning after #EUref. Ding. https://t.co/qMVlZPAINH

8.32am BST

It's unclear whether today's rally is a dead-cat bounce or a genuine recovery, says Mike van Dulken of Accendo Markets, a City trading firm.

8.23am BST

European stock markets are a sea of green this morning, as shares rally across the continent:

8.17am BST

In the City. shares are rallying at the start of trading, as we predicted.

In London, the FTSE 100 index has jumped by 110 points, or 1.8%, to 6251.

London's FTSE-100 is once again surging higher in early trade, as the air of panic that gripped global markets in the wake of that Brexit vote continues to ebb.

8.15am BST

UK house price inflation has picked up this month, according to Nationwide.

"Nationwide's June data gives a snapshot of the housing market immediately before the Brexit referendum.

"It shows a functioning market with decent price growth but limited supply - a languid calm before the storm.

8.07am BST

Japan's prime minister has urged his central bank to ensure ample funds are available to help Japanese companies ride out the Brexit shock.

Shinzo Abe told the Bank of Japan that it must do everything in its power to prevent any credit squeeze, as:

"A sense of uncertainty and worry about risks remain in the markets."

Related: Brexit: Bank of Japan urged to free up cash for Japanese companies in UK

Signs of buyers' remorse in Sunderland, reports @ChrisTigheFT https://t.co/n9UbKtJDvB pic.twitter.com/FMPqbj72H6

7.57am BST

The pound is also looking quite stable this morning, hovering around the $1.335 mark in early London trading.

But Nordea analyst Aurelija Augulyte reckons sterling is poised to move sharply soon, either higher or lower.

preparing for a breakout #GBPUSD pic.twitter.com/Ozi8m9Cyvr

7.43am BST

Good morning.

Global stock markets are shaking off the worst of the Brexit panic today, despite massive uncertainty over the UK's political and economic future.

So I am thinking of joining the Tory Party, the Labour Party and the FA, to make sure I have a vote on who leads this country

Returning from Brussels like... pic.twitter.com/IbAef9RrbK