Economics / Markets

The FTSE shed more than 21 points by lunchtime today following yesterday's brief rally, with banks taking the worst hit on continuing concerns over exposure to Dubai debt.

A sharp 1% rise for the Dow Jones in early trading has extended gains for the FTSE 100 this afternoon, as fears over Dubai debt exposures continued to wane.

London's leading shares have started the day positively as investors shake off concerns surrounding the fallout from Dubai.

US stocks have weathered a 7% slump for Dubai's leading index and are back in the black.

Fears are growing over Britain's exposure to the financial turmoil in the stricken Arab state of Dubai, reports the Daily Mail.

London investors are still wary after last week's request by Dubai World for a six-month standstill on debt repayments raised concerns about possible default.

US shares dipped into negative territory in early trading as the after-shock of Dubai's debt mountain disclosure continued to shake world markets.

The FTSE opened better than expected in early trading Friday after concerns over Dubai's financial health sent Asian markets plummeting.

UK private equity companies reacted angrily last night after a European parliamentary committee proposed widening the scope of a controversial directive for alternative fund managers.

European shares were lower this morning in early trading (FTSE Eurofirst 300 -0.6%; FTSE 100 -0.6%).