FEARS of economic doom as share values dramatically tumbled have been dismissed as a "very British Apocalypse" after the pound rallied in a spectacular Brexit bounce back.

Doom-mongers were stunned as the index of Britain’s biggest blue-chip companies ended up worth more last night than at the start of the week.

10 Across Europe traders were gripped by panic because of Brexit but the FTSE100 bounced back

It's after a major American bank denied speculation it was planning to move 2,000 jobs abroad following the shock referendum result.

Suzanne Evans, a prominent Vote Leave campaigner and Ukip spokesperson, said: "If this was the predicted apocalypse, well, it was a very British one.

"It was all over by teatime. Not a bad first day of freedom."

The pound plunged to a 31-year low in a matter of moments after Britain voted to leave the European Union.

But it wasn't long before the stock market fought back more than half its losses before closing down 3.2 per cent or 199.41 points at 6138.69.

One astonished investment analyst said after the City had one of its biggest roller-coasters ever: “It’s been a remarkable day,”

10 The markets have stabilised after a massive crash as Brexit was confirmed Credit: Getty Images

10 The pound rallied after falling ten percent against the dollar Credit: The Sun

10 Traders hang their heads in despair at a brokerage company in London's Canary Wharf Credit: Reuters

10 The FTSE100's biggest losers this morning

10 Traders shout across the trading floor as the City got off to a frenzied start Credit: Reuters

Across the rest of Europe, traders were gripped by panic at the vote to quit the EU. It sent foreign stock markets into free-fall.

On the other side of the Channel in FRANCE, the Cac 40 plummeted by 6.8 per cent. In GERMANY the Dax closed 5.82 per cent down.

Spain saw its Ibex index hit by a 12.35 per cent slide, the biggest loss in its 24-year history.

In Italy the reaction was even worse as its FTSE MIB collapsed by a whopping 12.48 per cent.

Even the Nikkei in Japan was not immune from the shock waves of the result. It closed 7.92 per cent down.

Back in the UK, those predicting a meltdown in the City were at first left rubbing their hands in glee as the FTSE 100 opened.

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It crashed by seven per cent — wiping a colossal £100billion off its value. At one stage early on it sank to just over 5,800 points.

Tony Cross, of investment supermarket Trustnet Direct, said it was the “biggest one-day loss in point terms” since its launch in 1984.

Fellow market analyst Chris Beauchamp, of online trader IG, described it as “an opening of cataclysmic proportions”.

But then came a fightback which saw a quarter of the Footsie’s stocks actually make gains.

By close of trading it was back up to 6,138.69, meaning it was just 199.41 down, or 3.15 per cent.

That was higher than it had been on Monday and was the first weekly gain in a month.

10 European markets also took a tumble in the Brexit fallout

Analyst Mr Beauchamp said: “In purely market terms, the FTSE 100 has staged a remarkable recovery.

“Markets are discovering how to live in a post-Brexit world, a state of affairs that seemed impossible just 24 hours ago.”

He said of the losses elsewhere: “The ripples of the UK’s decision today will be felt across the globe, and for a long time to come.”

The Footsie’s big gainers included Guinness maker Diageo, which was up 2.45 per cent.

Another was drugs firm Glaxo-SmithKline which saw its shares rise 3.71 per cent.

Tobacco giant Imperial Brands was up 0.42 per cent.

The FTSE 100 explained Our City Editor Rhodri Phillips explains the ups and downs on the markets after the vote for Brexit: The stock markets hate uncertainty – but after an early wobble the FTSE 100, like the rest of us, appears to be coming to terms with Brexit. Britain’s blue chip companies are now worth more than on Monday morning – and significantly more than on February 20, when the EU poll was called. Some stocks, such as Guinness-maker Diageo, drugs firm GlaxoSmithKline and tobacco seller Imperial Brands are even up for the day. London’s index of top firms is outperforming the markets in Germany, France and Japan – and is likely to do so in the coming weeks. This is because a weakened pound will be a boon for exporters, like engine maker Rolls-Royce. Look at a graph of the FTSE 100 since the start of the month and it traces the ups and downs of a crazy rollercoaster ride. It tumbled for a week from June 8, as opinion polls showed the chances of a Brexit were growing. Then it picked up on Thursday last week in the wake of England’s Euro 2016 victory over Wales – and rose steadily in recent days as polls veered more towards a Bremain. Today’s crash was inevitable, but brief, and despite panic in the City, the FTSE 100 is now on the way back. We are likely to see some more lurches and drops in the coming weeks and months. But this isn’t a return to the crazy volatility of the credit crunch.

Among significant fallers were banks and housebuilders.

Barclays was down 17.67 per cent, Lloyds fell 21 per cent, and RBS dropped 18.04 per cent.

Taylor Wimpey ended the day down 29.26 per cent and Persimmon fell 27.55 per cent.

The initial reaction to yesterday’s Brexit vote had also looked grim for the Pound.

It fell ten per cent against the dollar and at one point was worth just $1.31, a 30-year low.

But by the evening it had settled around $1.36, meaning $1 was worth around 73p.

Economist John Hearn, of the London Institute of Banking and Finance, described it as a “win, win, win for the UK economy” after the Pound almost hit £1.50 days ago — when a Remain vote had looked a virtual certainty.

He said: “The fall in the exchange rate benefits UK exporters by lowering prices.

10 Currency dealers monitor exchange rates Credit: Getty Images

10 Value of the pound plummeted as Britain voted for Brexit

“It helps the domestic producer by making their products more price competitive and does not affect the rate of inflation.”

He said of the UK shedding its EU shackles: “We can look forward to faster rates of economic growth as we embrace the world economy.”

His views were echoed by buoyant JCB king Lord Bamford. He declared: “We should look ahead to opportunities to trade more freely with the rest of the world.

10 City traders seemed convinced the Remain camp would eke out a win Credit: Rex Features

The Brexit vote was good news for the gold market as those with the jitters rushed to invest. Prices rose 22 per cent.

Across the Atlantic, the US Federal Reserve said it was “closely monitoring” the reaction of markets after the Dow Jones Industrial Average opened 2.8 per cent lower.

Last night experts predicted any big Brexit impact on the UK economy would see Bank of England Governor Mark Carney cut its interest rate to zero.

David Tinsley, economist at bank UBS, said the cut could happen before next February.

The prediction came as forecasts for growth were downgraded.

Bank chief's £250bn vow THE Bank of England has £250billion at hand to keep the markets stable, Governor Mark Carney said yesterday. He warned that “some market and economic volatility can be expected” after the Brexit vote. But he said the Bank “is monitoring developments closely and has undertaken extensive contingency planning”. He added that besides being ready to provide more than £250billion “the Bank won’t hesitate to take additional measures as required as markets adjust and the UK economy moves forward”. Mr Carney, right, said there will be “no initial change in the way our people can travel, our goods can move or our services can be sold”. He added: “It’ll take time for the UK to establish new relationships with Europe and the rest of the world.” The Bank vowed to “take all necessary steps to meet its responsibilities for monetary and financial stability”.

Capital Economics estimated it will be 1.5 per cent this year, down from its pre-Brexit forecast of just over 2 per cent.

Britain also faces losing its coveted AAA credit rating.

Moritz Kraemer, chief ratings officer at Standard and Poor’s, described it as “untenable under the circumstances”.

Rival ratings agency Moody’s said the Leave vote will “weigh on the UK’s economic and financial performance”.

But it added: “We expect that, over time, the UK and the EU would come to an arrangement to preserve most — but probably not all — of the current trading relationships.”

Credit rating into negative BRITAIN’S credit rating was last night lowered from stable to negative. Agency Moody’s expects growth to slow and public finances to weaken, making it harder to cut national debt. It also warned economic policymaking could suffer as Britain struggles through the break-up. The overall rating was kept at AA+, the second highest. It is three years since Moody’s cut it from AAA.

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