News that the prime minister was to make a Downing Street statement sparked a rally for sterling versus the dollar - leaving the UK currency almost a cent up on the day at one stage at almost $1.13.

It remained half a cent higher following confirmation she was to leave office.

Truss resignation - live updates

Shares also moved upwards initially on the FTSE 100 while government borrowing costs fell.

The 30-year gilt yield fell back to 3.8% - continuing its recovery since the post mini-budget highs of around 5% that sparked Bank of England intervention.

It took a series of U-turns on the tax-cutting growth plan, demanded by new Chancellor Jeremy Hunt after the sacking of Kwasi Kwarteng, for market damage to ease.

The reaction to the departure of Ms Truss signalled a measure of relief that the architect of the Growth Plan - outlined during her campaign for the Tory leadership - was on her way out.

Nevertheless, there was also a measure of uncertainty at play for values, given the complete lack of vision on who would replace Ms Truss in Number 10.

It will not be Mr Hunt, leaving him free to continue preparations for the Halloween statement that is to set out the government's new medium-term fiscal plan.

There will be some jitters over whether its direction is likely to change - or even be delayed to allow the new Tory leader to get their feet under the desk.

There has been no indication that the statement will be delayed as it is expected that the successor will be in place before 31 October.

Business appealed for a more stable period ahead.

Tony Danker, the director-general of the CBI, said: "The politics of recent weeks have undermined the confidence of people, businesses, markets and global investors in Britain.

"That must now come to an end if we are to avoid yet more harm to households and firms.

"Stability is key. The next Prime Minister will need to act to restore confidence from day one.

"They will need to deliver a credible fiscal plan for the medium term as soon as possible, and a plan for the long-term growth of our economy."