Economics / Markets

The FTSE plunged into negative territory in afternoon trading Friday as concerns over US economic growth and mixed results from big corporates drove Wall Street into negative territory at the start of trading.

BP is driving a midday rally in London shares after the oil giant's attempts to stop the oil leak proved successful, although banking stocks continue to slide.

The FTSE opened up at 5237.75, up 26.46 points, (0.51%) as European stocks edged higher in opening trading, drawing some optimism from Wall Street's late-session comeback.

The FTSE 100 regained some of the ground it lost today in late trading, but still closed down 0.8% lower at 5,211 points.

China's GDP growth rate slowed to 10.3% in the second quarter, down from 11.9% the previous quarter, as the Government made efforts to cool the overheating economy.

Revised US economic forecasts and disappointing GDP figures from China hit European markets in early trading on Thursday, with the FTSE falling 0.6%.

Henderson chief economist Simon Ward believes the Bank of England must stop ignoring strong UK inflation and raise interest rates.

Update 12pm: The FTSE dropped more than half a percentage point into the red this afternoon following a shaky morning session for banks.

Consumer confidence has fallen for the second month in a row, regressing to similar levels as seen 12 months ago, according to Nationwide.

UK unemployment fell 0.1% to 7.8% in the three months to May this year, according to the latest data from the Office for National Statistics.