Economics / Markets

London traders entered a buying frenzy late on Monday afternoon as US markets opened on a positive note, with the FTSE100 jumping 155.25 points (3.82%) to 4,218.26.

The FTSE100 has spent the entire day in decline as fears of a global recession and more losses on Wall Street spook investors.

HBOS has joined the '90pc club', according to analysis by DigitalLook.com. The club comprises those companies whose share prices have dipped by 90pc or more from their peaks over the last three years and also includes New Star, Taylor Wimpey and Barratt...

Strong losses for the mining sector coupled with a poor start on Wall Street has smashed the FTSE100 this afternoon.

The rate of CPI inflation hit 5.2pc in September, up from 4.7pc in August. The annual rate of RPI inflation, meanwhile, edged up to 5pc, from 4.9pc a month earlier.

Economists have called for other countries to follow the lead of the UK Government following its announcement that it will shore up RBS, HBOS and Lloyds TSB with £37bn. That action, they said, should be taken sooner rather than later.

The credit crunch will "set the City back a decade" and cost 62,000 City-workers their jobs, according to the centre for economics and business research (cebr).

The FTSE100 ticked above 4,000 once again this afternoon following a brief rally ahead of Wall Street's Friday session.

The market's fairly mute reaction to the banking rescue package suggests some feel it may not go far enough and investors should expect more turmoil to come, according to New Star's Guy de Blonay.

F&C has launched Active Return fund, a pooled investment portfolio that will target returns of 2-4pc per annum over short term money market rates and low volatility.