Economics / Markets

The FTSE 100 looks set to record its worst ever annual performance despite stocks staging a late recovery in the first two trading days this week.

Mining stocks lead the way in London this morning as the FTSE 100 begins trading higher after the four-day break, up 89.04 points, or 2.11%, to 4,305.63.

The Dow Jones closed 1.18% down yesterday as investors continue to be concerned the auto bailout may not save the car companies and home prices may fall even further.

The FTSE 100 dipped this morning - falling 0.96% to 4,246.42 by 9.30am - with the LSE leading the losers.

Despite yesterdays gains on the back of a rally in retail sales, the FTSE 100 is in decline today, opening at 4,314.51 and registering losses of 1.7% by mid morning.

The Organisation of the Petroleum Exporting Countries' (OPEC) decision to cut production in a bid to support oil prices has so far not had the desired effect.

Hong Kong's Hang Seng index was spurred today on news the Chinese government is to introduce measures to stimulate its housing market, ending the day up nearly 2.2%.

US stock markets rose cautiously yesterday on the back of the Federal Reserve's historic decision to cut interest rates to 0.25%.

The FTSE 100 immediately fell from an opening of 4,277 to below 4,255 this morning, amid speculation that the Fed will today halve US interest rates to 0.5%.

Shares in private equity giant 3i Group plunged 10% as HBOS prospered on a mixed Monday for the FTSE.