SINGAPORE, July 6 Reuters Britain39;s stock markets were set to recover on Wednesday after their worst singleday drubbing in three weeks, even as investors braced for months of political uncertainty and questions over the survival of a scandalhit prime minister.

Stock futures on the benchmark FTSE 100 index suggested markets might rally more than a percent when London opens, recovering from Tuesday39;s near 3 tumble after the resignations of his finance and health secretaries plunged Prime Minister Boris Johnson39;s government into another crisis.

Johnson showed his determination to remain in office by appointing Nadhim Zahawi, previously education minister, as his new finance minister, and filling some of the other vacancies.

But his premiership is in doubt after the slew of resignations from ministers saying he was not fit to govern. He faces questions in parliament on Wednesday, followed by a grilling by senior lawmakers.

Investors expect little respite in the near term for sterling , which is at a twoyear low versus the dollar.

I think this news is not a shock to a lot of people. Everyone39;s sort of doing the rounds and looking at who could potentially come in, said Chris Weston, head of research at Melbournebased brokerage Pepperstone.

The price action that we39;re seeing in the pound is very thematic of a market that believes we39;re going to see policy continuation.

The one positive investors appeared to bet on was that the crisis would lead to a…