Economics / Markets

Britain's leading share index has fallen back into the red after enjoying modest gains in early Thursday trading.

Andrew Sentance voted against the rest of the Monetary Policy Committee (MPC) for a rise in interest rates for the third consecutive month, minutes from the August meeting show.

The Dow Jones has made steady gains on the back of positive US economic news, allaying fears of a slowing economy.

The FTSE has extended early gains after figures showed inflation eased in July, with financials and mining stocks leading the charge into positive territory.

UK inflation dropped marginally to 3.1% in July but remains well above the Government's 2% target.

Eurozone annual inflation hit a 20-month high in July at 1.7%, figures from Eurostat show.

Japan's economy grew at a much weaker than expected pace and was overshadowed by China in the second quarter.

The FTSE 100 opened higher, up 0.26% or 13.87 points to 5,289.31, supported by M&A activity in the resources sector.

Leading bankers are claiming to be so hamstrung by bonus restrictions they are threatening to relocate overseas.

Insurers rallied on Friday following speculation over bid interest in Aviva's general insurance business.