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British and European stock markets have continued their path to recovery on Wednesday, adding to the gains witnessed on Tuesday.

After the initial shock of the vote to leave the EU, the FTSE 100 rose 2.6% on Tuesday before rising 2.2 to 6,277.41 points by midday on Wednesday.

The FTSE 250 - which has more UK-focused companies, and is therefore being regarded as a better indicator of the UK economy than the FTSE 100 - also gained nearly 2% after rising 3.6% on Tuesday.

Despite rises over the past two days, both indices are below their pre-referendum levels.

Frankfurt's Dax and the Paris Cac 40 both saw similar increases in early trade but soon slowed to growth of under 1%.

After regaining some ground on Tuesday, the pound rose by around 0.75% to $1.343 against the US dollar, still well below pre-referendum levels.

Michael Hewson, chief market analyst at CMC Markets, said: "With no likelihood of Article 50 of the Lisbon Treaty getting triggered any time soon, it seems that the status quo isn't likely to change in the short term.

"Whilst that doesn't remove the uncertainty with respect to the eventual outcome, it also means that markets are going to have plenty of time to settle into their new found reality and equilibrium, as the extra time allotted could well see cooler heads prevail."