The City is growing increasingly concerned about the probability of a Jeremy Corbyn-led government taking power as early as this year.

Analysts at Keefe, Bruyette & Woods conclude that the chances of the Government collapsing after failing to win support for a Brexit deal have jumped, which could lead to a snap election and Labour victory.

KBW notes some 40-80 Conservative MPs are positioned against the Government’s so-called Chequers agreement on Brexit, making a vote of no confidence in Theresa May likely.