The sterling and oil comeback is very much on

Evidence Brexit won't spell recession for the UK...

The sterling and oil comeback is very much on

Chris Radburn / PA

Sterling has risen to its highest levels against both the dollar and the euro in seven weeks after a positive survey of the UK service industry confirmed similar snapshots of construction and manufacturing last week, triggering hopes that Britain can avoid recession.

The Markit Services Sector Purchasing Managers Index rose by more than five points in August, its highest monthly rise on record, as companies order books rebounded and they took on more staff after the Brexit shock.

The pound is trading at 83.7 against the euro – it was close to 88p in mid-August – and at 1.33 against the dollar.

Meanwhile, crude oil prices jumped by up to 4% at one stage yesterday – though later pared back – as Russia and Saudi Arabia, the world’s largest oil producers, announced they’d work together to stabilise oil prices.

The two nations announced Monday that they will not act immediately but could limit output in the future.

The joint statement was signed by the country's energy ministers in China on the sidelines of a G20 summit. Russian energy minister Alexander Novak called it a "historical moment" between the world's big oil players.

The development comes two weeks before a meeting of OPEC oil ministers in Algiers.