Economic uncertainty caused by the pandemic means Chancellor Rishi Sunak may delay his autumn Budget.

Fears of a second wave of Covid-19 had led Mr Sunak to consider delaying major public spending decisions until after the crisis, most likely until the spring.

Despite the record-breaking GDP slump expected for the second quarter, experts will be keenly watching the monthly figure for June amid predictions it will show a sharp eight percent bounce-back as lockdown restrictions eased further.

This follows a far-lower-than-expected 1.8 percent rebound month-on-month in May.

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3.45pm update: The FTSE-100 index is up 140.05 at 6294.39

3.15pm update: Wall Street's main indexes jump with the S&P 500 crawling towards a record high on open

The S&P 500 is about 0.9% below its intraday record high of 3,393.52.

At 9.43am ET (2.43pm BST), the Dow Jones Industrial Average was up 230.21 points, or 0.83%, at 27,917.12, the S&P 500 was up 30.25 points, or 0.91%, at 3,363.94.

The Nasdaq Composite was up 115.54 points, or 1.07%, at 10,898.37.

2.45pm update: The FTSE-100 index is up 92.08 at 6246.42

2.10pm update: US stocks expected to rise at open with eyes on stimulus announcement

Wall Street is expected to open higher with the S&P 500 crawling toward a record high as a sharp fall in US oil stockpiles drove up prices.

The S&P 500 and Dow snapped seven days of gains on Tuesday after the benchmark index came within 0.15% of its closing record high, powered by historic fiscal and monetary stimulus and signs of a nascent economic recovery.

Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, speaking about Tuesday's move said: ”The S&P 500 got very close (to a record high), and there might be some technical resistance at that level.

"But it does look like this morning, there's enough upside momentum that markets could very well be past that when they open."

1.20pm update: Coronavirus pushes Swiss federal finances towards red

The Swiss federal government expects a financing deficit of 20.9 billion Swiss francs ($22.87 billion) and an ordinary budget deficit of 3.1 billion francs this year as the coronavirus pandemic hits revenue.

It said: “According to initial estimates, the extraordinary budget measures to combat the COVID-19 pandemic amount to 17.8 billion francs.”

Switzerland ran a federal budget surplus of 3.6 billion francs in 2019 but, like other countries around the world, it was forced to shutter much of the economy for weeks to stem the spread of the disease.

12.45pm update: The FTSE-100 index at 12:45pm was up 74.15 at 6228.49

12.30pm update: Small firms urge “most pro-business Budget ever” amid UK recession

Responding to new figures which show that the UK has officially suffered a recession,Federation of Small Businesses (FSB) national chairman Mike Cherry said: “Small firms make-up 99% of our business community and we won’t recover from this incredibly sharp recession unless they’re firing on all cylinders. Every policy change from here on in needs to be carefully assessed for its potential to create jobs, spur growth and increase productivity.

“We need the most pro-business, pro-self-employed Budget ever this autumn, one that lowers the costs of innovating and bringing great goods and services to market and eschews tax rises.

“We’ve had welcome measures to aid business survival and job retention, the Government should now be focussing on measures to aid business and job creation.

“A cut to employer national insurance contributions, backing for the New Enterprise Allowance and Start-Up Loans Programme, ambitious investment in our infrastructure – not least broadband – networks, taking more small firms out of the regressive business rates system and ending a worsening £23 billion late payment crisis are all a must.

He added: “In four months’ time the UK will transition to its new relationship with the EU but we still have no idea what that relationship will look like.

“When EU-UK talks resume on Monday, we need to see negotiators on all side accelerating their efforts to agree a pro-business deal in acknowledgement of the fact that time is of the essence.

“It’s been encouraging to see UK efforts to strike new trade deals. It’s critical that any new UK free trade agreements include a dedicated small business chapter spelling out exactly how each deal will protect and promote the interests of the UK’s 5.8 million small businesses.”

11.45am update: The FTSE-100 index is up 66.41 at 6220.75

11.00am update: More dire warnings from experts

Samuel Tombs at Pantheon Macroeconomics blamed the Government's slow response to Covid-19 for the depth of the UK's second-quarter contraction.

He said: "The long duration of the lockdown in the second quarter, due to the Government's slow response to Covid-19 in March, followed by its failure to prevent the virus from spreading from hospitals, was at the root of the economy's under-performance in the second quarter."

He warned the rebound will "peter out in the autumn" with further lockdowns likely.

The Institute of Directors (IoD) and British Chambers of Commerce (BCC) called for Chancellor Rishi Sunak to take further action before the autumn statement to help prevent a disaster for jobs and businesses.

"The battle now is to prevent longer-term scarring from this plunge in economic activity," according to IoD chief economist Tej Parikh.

He added: "The Chancellor must respond now with measures to support jobs by cutting the cost of employment, for instance by reducing employers' National Insurance contributions.

"By the autumn, it might be too late to have greatest effect."

10.45am update: The FTSE-100 index is up 45.10 at 6199.44

10.15am: Bright start for EU markets

Like the FTSE, European markets are also enjoying a strong start to the day.

Euronext 100, CAC 40 and Swiss Market Index are all up on open.

Only DAX has suffered a small decline.

Euronext is up 0.35%, CAC 0.22% and Swiss Market 0.41%.

9.15am update: Experts issue warning of long, slow recovery

Britain faces a "long road ahead" to recovery after suffering the biggest hit so far from the pandemic of the major global economies, experts have warned.

Business groups and economists also cautioned the path of the recovery may not be smooth, given the threat of a second wave and possible further lockdowns, with a jobs crisis also on the horizon as Government support measures come to an end.

Melissa Davies, chief economist at Redburn, says: "There is a long road ahead for the UK economy to claw back its pandemic losses, all the while facing deflationary headwinds from large amounts of spare capacity and job losses.

"As the furlough scheme rolls off, more stimulus will be needed to support household incomes, not least if infection numbers rise in the autumn."

James Smith, ING developed markets economist, said: "Rising unemployment is probably the biggest threat to the recovery at the moment, and this is being linked to the gradual unwinding of the Government's furlough scheme over the next few months.

"Many firms, particularly in the hardest-hit hospitality/recreation sectors are still struggling as a result of ongoing consumer caution and social distancing constraints."

8.30am: FTSE up on open

FTSE has mirrored yesterday's bright start with an early-morning surge.

After opening at 6,154, the index is now sitting pretty at 6,191.

The rise comes despite ONS warning the UK is now officially in recession.

7:08am update: UK recession announcement leaves Sky News reporter speechless

Sky News reporter said: "We have never seen anything like this.

“It’s official.

“Not only is the UK now formally in recession.

“It’s the deepest recession in UK history.

“The deepest of any G7 economy.

“The deepest since the invention of Gross Domestic Product.

“GDP shrank by 20.4 percent in Q2, acc to ONS. Follows a 2.2 percent fall in Q1.”

5.50am update: Asian stocks fall on US stimulus uncertainty

The index of ex-Japan Asia-Pacific shares shedding 0.76 percent, while Japan’s Nikkei gained 0.2 percent.

On Wall Street, the S&P 500 snapped a seven-day winning streak after coming within reach of its all-time peak hit in February just before the global outbreak of the COVID-19.

The declines came as political gridlock between the Republican White House and congressional Democrats over coronavirus relief continued for a fourth day, with each party blaming the other for intransigence.

The US economy could be left with measures US President Donald Trump called for on Saturday through executive orders to bypass Congress.

Junpei Tanaka, strategist at Pictet: “We have enormous uncertainty. It appears it’s getting harder for both sides to compromise as the election is nearing... Trump’s proposals would be smaller than markets have expected. There’s question over whether they are viable, too."