The UK’s premier index briefly reached a 13-month high thanks to surging oil prices and a strong rally from blue-chip banking stocks.

London’s top flight index tumbled below 6,700 yesterday as investors baulked at a bleak economic update from the UK manufacturing industry.

Britain’s top share index climbed to its highest level in nearly a year yesterday, led higher by miners, and with ITV soaring after a well-received trading update.

The London market was dragged into the red after a gloomy economic update from Britain’s construction industry dealt a punishing blow to housebuilders.

Chancellor George Osborne’s efforts to calm the markets over Brexit proved fruitless as more than £40bn (€48bn) was wiped off the value of Britain’s biggest companies.

London’s top-flight index was dragged into the red yesterday as a lacklustre performance from commodity stocks weighed heavy on the market.

The Ftse 100 slumped to its lowest level in almost three years yesterday, with all individual stocks in the red and miners leading the slide on growing fears of a China-led global economic slowdown.

The London market suffered its biggest one day fall in a month after official figures showed a sharp slowdown in UK economic growth at the start of the year.

London’s top-flight fell for the fourth day in a row as disappointing economic data from China dragged on commodity stocks though oil prices stabilised.