Economics / Markets

The Dow has failed to consolidate yesterday's gains and is currently down 103.78 points (1.31%) to 7820.78 at 11.25 EDT.

A strong performance from banks including Barclays, Lloyds and RBS helped the FTSE hold steady on opening this morning at 3,925 points.

Vehicle giant General Motors (GM) propped up the Dow Jones early on Thursday after agreeing a deal analysts say will enable it to keep US bail-out cash.

Better-than-expected economic data from the US spurred buying activity in Tokyo on Thursday, but raised only a tiny cheer in London.

The Dow Jones climbed in early trading on Wednesday on better-than-expected housing and manufacturing figures, positing a gain of 174.51 (2.28%) to 7,834.72 at 10:50EST.

The FTSE 100 advanced in early trading on Wednesday thanks to a positive start in the energy sector.

London shares fell further this afternoon as investors took stock of a major US investment plan, and the FTSE 100 dipped 55.53 points (1.4%) to 3,897.28 shortly after 3pm.

Trading was mixed in London this morning as banks continued to climb on news of a $1trn toxic debt plan in the US, with the FTSE100 down 6.35 points (0.16%) to 3,946.46 by mid-morning.

The markets soared stateside as the launch of the US government's programme to tackle banks' toxic debt prompted the Dow Jones to swell 275.90 (3.79%) to 7,554.28 by 11.31 EDT, continuing its two-week rally.

The FTSE 100 charged higher this morning as financials rallied in anticipation of the US Government launching its $500bn investment programme later today.