Economics / Markets

The FTSE fell sharply this morning after talks to agree a $700bn bail-out of the US financial industry stalled overnight.

The FTSE closed today with a rise of 101.45 points (1.99%) to 6197.02 as financial stocks saw the biggest gains.

Shares in London remained broadly stable as markets opened, with the FTSE 100 up 0.25 points (less than 0.01%) to 5,095.8.

The FTSE ended trading with falls of 33.07 points (0.64%) to 5103.05, despite an EDF buy-out this morning.

East European stocks are attractively priced at present, with limited risks of further downward movement, according to Raiffeisen Capital Management (RCM).

The FTSE is currently down 2.85 points (0.06%) to 5133.27 despite an EDF buy-out.

Trading in London got off to a poor start after concerns on Wall Street spread, with the FTSE 100 down 100.14 points (1.91%) to 5,136.12.

In London, shares have plummeted in early trading amid fears a US bail-out plan might take some time to materialise, and by mid-morning the FTSE 100 was down 80/29 points (1.53%) to 5,155.97.

After remaining broadly stable in early trade, London shares began to fall after US markets opened with negative sentiment, and the FTSE 100 closed down 75.04 points (1.41%) at 5,236.26.

Global markets have likely seen a "capitulation" stage, though recent gains will need be consolidated before further recovery, according to Peter Lucas, global investment strategist at Ashburton.