Economics / Markets

London trading has been turbulent this morning, with the FTSE 100 index moving wildly as it makes its way into positive territory, up 7.52 points (0.17%) to 4,352.99 at 8.30am.

On Wall Street, trading got off to a poor start after the Federal Reserve lowered its expectations for US GDP this year.

The FTSE 100 has fallen almost 2% in early trading this morning, as an IMF warning the UK Government may need to pump more capital into Britain's banks drove the blue-chip index down 85.50 points to 4,382.91.

A poor start for consumer stocks has led the FTSE 100 into negative territory this morning, with the index down 3.66 points, or 0.08%, to 4,478.59 by 8:45am.

The Dow Jones has fallen 18.56 points (0.22%) to 8485.52 following alarming US housing starts data.

The FTSE 100 has built on yesterday's gains, climbing 41.86 points (0.94%) to 4488.31 despite disappointing results from Marks & Spencer Group.

The FTSE 100 has recouped initial losses in early trading, with financials providing support on the back of plans by Lloyds to redeem the Government's £4bn stake of preference shares in the group.

US markets posted marginal gains in early trading, climbing 0.72 points (0.01%) to 8332.04 as the Federal Reserve revealed industrial production in the States could be stabilising.

Banks once again lead the FTSE 100 winner's table, but the index remains in the red shortly after midday.

The Dow opened marginally down on yesterday's 8,469 close but immediately dropped further to 8,329.