It comes after Bank of England governor Andrew Bailey urged bank chief executives to step up preparations for a no deal Brexit, according to Sky News. 

Meanwhile, Japan’s benchmark Topix index rose 0.6 percent, while Hong Kong’s Hang Seng added 1.2 percent and South Korea’s Kospi rallied 2.5 percent. Oil went back above $40 for the first time in almost three months.

Kerry Craig, global market strategist at JPMorgan, told FT: “Compared to market drawdowns in past recessions, the speed and scale of this rebound is unusual.

“The difference here is huge amounts of stimulus from governments and central banks.”

In Asia, China’s CSI 300 index of Shanghai and Shenzhen-listed stocks climbed 0.5 percent.

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10.42pm update: Angela Merkel's coalition agree stimulus package

Ms Merkel's coalition agreed a bumper €130billion (£116billion) financial package to speed up Germany's recovery from the pandemic. 

The Chancellor said: "The size of the package will amount to 130 billion euros for the years 2020/2021, 120 billion of which will be spent by the federal government.

"So we have an economic stimulus package, a package for the future."

9.14pm update: US stocks rebound sharply 

The S&P 500 and Dow Jones have seen an uptick in trading following massive drops in March. 

David Carter, chief investment officer at Lenox Wealth Advisors said: "There is growing confidence the U.S. economy can safely re-open, much as other economies such as China and Italy have successfully done.

"Risk appetite for equities has been helped by optimism in the economy, as well as investors having few other alternatives."

7.21pm update: Dow Jones up 1.7 percent

The US stock exchange has continued its rise and at the time of writing, was up 1.7 percent. 

It is currently at 29,196 up 453 points. 

5.31pm update: FTSE 100 closes 2.61 percent up 

The FTSE 100 stock exchange finished trading 162.27 points up at 6,382.41. 

5.01pm update: Changes to insolvency laws will businesses "breathing space" 

Due to the temporary easing of the rules around insolvency, Business Secretary, Alok Sharma claimed many will be given a fighting chance from the coronavirus pandemic. 

Mr Sharma said: "The Bill will allow business owners time and space to explore rescue options.

"It will allow directors of companies that are technically insolvent, but simply because of a temporary drop in demand to trade because of the Covid-19 crisis, to be able to proceed with the business without threat of personal liability."

4.27pm update: Don't bank on the pound 

The Bank of England advised banks to prepare for a no deal Brexit today. 

The last round of negotiations ends this week and has seen the pound rise in trading. 

However, analysts have warned this may only be short-lived. 

ING analysts said: "GBP has enjoyed some temporary out-performance on reports of more flexibility in the UK Brexit position, but we doubt GBP can hold onto gains."

4.03pm update: Dow Jones continues rise

The US stock exchange is currently trading 351.64 points (1.37 percent) up at the time of writing. 

3.29pm update: FTSE 100 rises 

The FTSE 100 is currently trading 2.3 percent higher at 6,363.55 at the time of writing. 

Additional reporting by Rebecca Perring. 

1.53pm update: Boris vows to help economy amid coronavirus 

Mr Johnson told MPs during the PMQs debate  "there are all sorts of packages that we'll be bringing forward" to help sectors of the economy recover from coronavirus, but added "I don't want to extend some of the schemes that we currently have". 

1.42pm update: Coronavirus to reset state role in UK economy 

The coronavirus pandemic will reset the balance between private companies and the state in Britain and could in time produce a more productive economy, according to the man leading a £15 billion drive to support smaller firms.

Stephen Welton, head of Business Growth Fund (BGF), the most active investor in fast-growing British companies, is talking to the government, insurance companies, pension schemes and other investors to recapitalise businesses and prevent more permanent scarring.

Central to any recovery, he believes, is the need to identify which companies can still grow in a post-COVID world.

12.51pm update: FTSE 100 up 

The FTSE 100 index at 12.45pm was up 61.17 at 6281.31.

12.07pm update: Euro tops 11-week high 

The euro topped an 11-week high on Wednesday, on track for a seven-day winning streak, and the dollar fell against most currencies as the prospects of more stimulus and hopes for economic recovery led investors to buy riskier assets.

Overnight euro implied volatility gauges jumped to 12 percent, their highest in one month, suggesting traders were preparing for moves bigger than usual in the common currency.

11.54am update: Spain works towards opening up to tourists 

Spain is working on starting to gradually open up to tourists from countries considered more secure in the fight against COVID-19 from June 22, a tourism ministry spokesman has revealed. 

Madrid has previously set July 1 as the date to reopen its borders to tourism, which accounts for some 12 percent of the country's economy, after a months-long shutdown due to the outbreak of the new coronavirus which causes COVID-19.

Separately Foreign Minister Arancha Gonzalez Laya tweeted that Germany would lift a recommendation to its nationals to avoid travelling to Spain as soon as Spain lifts restrictions on travel from abroad.

11.40pm update: Germany to agree on deal to strenghten economy

German Labour Minister Hubertus Heil said on Wednesday he was optimistic that coalition parties would agree on a big stimulus package that would strengthen the overall economy and the labour market recover more quickly from the coronavirus pandemic.

Speaking to reporters in Berlin after data showed a further rise in unemployment in May, Mr Heil said firms had put around 6 million people on reduced working hours under the government's Kurzarbeit short-time working scheme as of the end of April.

11.13am update: Billions could be wiped off Scottish economy 

Nicola Sturgeon faces a nightmare after it emerged billions of pounds could be wiped from Scotland's economy if the UK Government refuses to delay Brexit.

A new report has found there could be major costs to Scotland's economy from Brexit for years to come and, without extending the Brexit transition period or a free trade deal being agreed, agriculture, fisheries and manufacturing could all be hit hard.

10.20am update: Sterling climbs against weak dollar 

Sterling hovered around $1.26 on Wednesday after rising to a one-month high against a broadly weaker dollar as Britain showed signs it might be willing to compromise on sticking points to reach a Brexit deal.

The dollar fell against most currencies as investors pondered what the potential fallout might be from the mass protests against racism spreading across the US. And prospects for more government stimulus and a global economic recovery emboldened investors to step up holdings of riskier assets.

Against a weakening dollar, the pound touched $1.2608 around 8am, its highest since April 30. It was last at $1.2580, up 0.2 percent on the day.

Versus the euro, sterling lost 0.1 percent to 89.07 as the pound is still weighed down by many factors, including Brexit-related risks and speculation about negative rates.

9.07am update: FTSE up 

The FTSE 100 index at 8.45am was up 62.17 at 6282.31.

8.01am update: FTSE 100 opens 

The FTSE 00 index opened at 6220.14.

7.50am update: FTSE unchanged 

The FTSE 100 index at 7.44am was unchanged at 6220.14.

7.38am update: G7 to hold telephone conference 

Ginance leaders of the Group of Seven nations will hold a teleconference on Wednesday to discuss measures to combat the coronavirus pandemic, Japan's Jiji news agency said.

It will be the latest of several teleconferences held by G7 finance leaders since the spread of the pandemic that has pushed the global economy to the verge of deep recession.

7.15am update: Australia already in recession 

Australia's economy is already in recession, the country's treasurer said on Wednesday, after official data showed gross domestic product fell last quarter as entire business sectors were shut down to fight the coronavirus.

Data from the Australian Bureau of Statistics (ABS) showed the A$2 trillion ($1.39 trillion) economy contracted 0.3 percent in the quarter ended March, the first decline in nine years.

That took the annual growth to 1.4 percent, the slowest since the 2009 global financial crisis, as the economy was hit by the worst bushfire season in living memory, a prolonged drought and a pandemic that shut down businesses and left many without jobs.

6.06am update: Asian stocks climb to 3-month high as recovery hopes outweigh looming risks

Asian shares vaulted to a near three-month high on Wednesday as hopes of more stimulus and further easing in social restrictions around the world outweighed caution over a host of worries from the coronavirus to growing US civil unrest.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.3 percent, extending its rally into a fifth straight day to reach a level last seen on March 9.

Japan’s Nikkei rose 1.2 percent to its highest level since late February, while mainland China’s CSI300 rose 0.4 percent to break above its May peak to a 12-week high.

E-mini futures for the US S&P 500 were up 0.2 percent in early Wednesday trade, extending the gains so far this week to 1.4 percent.