Theresa May's victory in yesterday's vote of confidence was "truly Pyrrhic" and nothing has changed, says Neil Wilson of Markets.com.

"She cannot get her deal through Parliament, and cannot govern essentially. The question is how long she teases it out. The longer she does the greater the chance of no deal.

"The base case must still be that the EU will not reopen the deal and all it can really offer are some warm words around implementation. We know this will not satisfy the European Research Group or the Democratic Unionist Party."

The pound has bounced back against the dollar, but he says the risks "still seem very much skewed to the downside".

"It’s hard to see much to cheer for sterling bulls."