Economics / Markets

Banks dived in early trading on Friday after a bleak trading statement from HBOS revealed the extent of its bad debts on mortgages and unsecured lending.

London markets were boosted by oil companies this afternoon after a report from the International Energy Agency (IEA) forecast rising demand in 2009.

A cooling off in demand for insurance stocks dragged the FTSE 100 down by over 0.5% to below 4,360 upon opening this morning.

UK stocks rebounded on Tuesday led by significant gains for Stagecoach , owner of Britain's biggest rail franchise.

The FTSE soared in early trading following a slump on Friday sparked by fears of more than half a million job cuts in the US.

London trading worsened as Friday afternoon as after figures revealed more half a million jobs were cut in the US in November.

Struggling mining and resources stocks followed the lead of US counterparts overnight and dragged the FTSE100 lower in early trading this morning, currently 0.87% behind to 4127.56.

UK share prices reacted badly to the Bank of England's 1% rate cut and the FTSE100 witnessed a sharp drop following the announcement.

The FTSE was threatening to slip below 4,000 on Wednesday as consumer confidence slumped.

Beleaguered fund manager New Star's share price has plummeted again this morning as investors are left reeling from another dire 24-hours for global stock markets.