Economics / Markets

The Dow Jones closed 297.81 points (3.79%) down last night at 7552.60 after news of further job cuts and government borrowing from Chrysler and General Motors (GM).

Financials rallied in early trading following the sector's drag on the FTSE 100 yesterday, as Legal & General, RBS, Lloyds Banking Group and Barclays spurred forwards.

Financials have experienced a torrid time this afternoon on the FTSE 100 with major players such as Legal & General, Prudential and Aviva all suffering. By 3.25pm, the index was down 27.77 points (0.66%) to reach 4,161.8.

Further selling of financials characterised London's leading stock exchange on Monday with the index down more than 24 points, or 0.6%, to 4,164.

Having rallied strongly just prior to close of play last night the Dow Jones looks set to finish the week below the 8,000 mark.

Financial and commodity companies helped the FTSE 100 climb 60.35 points this morning (1.44%) to reach 4,262.59 by 8.50am.

The FTSE 100 stayed down all afternoon, dropping 1.6% as of 2.45pm, with every sector following suit.

The FTSE 100 plunged 65 points from 8am to around 4,170 by 9am this morning as the FSA hit out at HBOS.

After falling slightly in early trading, and following a series of poor economic forecasts, UK market made a slight recovery and the FTSE100 index was down 11.03 points (0.26%) to 4,202.05.

Trading got off to a poor start in London this morning after US investors became concerned over a vast Government stimulus plan.