Economics / Markets

The FTSE has lost its early banking-fuelled gains as investors took stock of disappointing mortgage data.

Banks led the FTSE 100 index 0.6% higher in early trading to 5,704.96 as investors showed their relief after Ireland agreed an €85bn (£72.5bn) rescue package.

Economists are urging caution on the impact of the coalition government's deficit reduction plans, despite upwardly revised growth forecasts from the Office for Budget Responsibility (OBR).

European finance ministers and the International Monetary Fund have agreed a €85bn (£72bn) bail-out for Ireland in an effort to calm market fears of a new banking crisis.

Dwarf tossing on Wall St, work experience at the FSA and an unfortunate pensioner. It's IFAonline's slightly leftfield round-up of the week.

Fresh fears of eurozone debt contagion hit global markets today, with the largest European indices suffering large losses.

The Treasury Select Committee (TSC) has expressed doubts about the coalition government's programme to aid Britain's economic recovery by slashing public sector spending.

Losses in Asia, a lack of direction from Wall Street, where traders sat out Thursday's session for Thanksgiving, and falling resources stocks have made for a poor start for the FTSE 100.

Negotiations to reduce bank bonuses have been hit by the withdrawal of Standard Chartered from talks with the government.

Lord Myners, the former City minister, has called on the Chancellor to prove his claim Britain was "on the brink of bankruptcy" before the coalition government took over in May.