Money (8)

The value of the pound showed early signs of recovery and the FTSE 100 continued at 11-month highs on Monday after it was confirmed Theresa May would be the next Prime Minister.

Sterling rose 1% against the US dollar to $1.3140 almost immediately after Andrea Leadsom dropped out of the Conservative leadership race, leaving Ms May as the only remaining candidate.

The FTSE 100 had dropped below 6,000 points following the Brexit vote but has grown to nearly 6,700 points in recent trading.

Having been hit hardest after the vote, shares in housebuilders and property firms rose strongest on Tuesday morning. Taylor Wimpey saw its share price rise almost 6.5%. Barratt Developments rose by 4.28%, with Persimmon and Berkeley Group Holdings rising 3.94% and 3.68%, respectively.

Chris Towner, chief economist at HiFX, said: "It is important to note that while Sterling trades on the back foot due to uncertainty, as soon as we start to see the potential for a deal with the EU complemented by a strong leader in Theresa May, then we would expect to see Sterling regain some of its strength.

"We are starting to see signs of this filter into Sterling now. The first step was always going to be to get a leader in place and Sterling is beginning to regain its footing and some lost territory. Its journey back to the levels of the evening of June 23rd are still very distant; however perhaps we have already seen the ‘Brexit Bottom for Sterling’.”