Economics / Markets

London shares fell after several days of good performance as the Bank of England predicted the economy is about to stagnate, with the FTSE 100 losing 85.9 points (1.55%) to 5,448.6.

Strong losses for US financials overnight stung UK banking stocks upon opening this morning; driving the FTSE100 34.40 points (0.62%) lower to 5500.10.

After a turbulent day, the FTSE has made marginal losses, down 7.30 points (0.13%) to 5534.50.

The rate of CPI inflation hit 4.4pc in July, up from 3.8pc in June and more than twice the target 2pc level.

Investors in US equities should begin constructively taking on additional risk, according to BlackRock vice chairman Bob Doll.

Sluggish mining and bank stocks have dragged the FTSE100 lower this morning, currently 21.80 points (0.39%) down to 5520.

The FTSE 100 is up once again after shooting skywards this morning, rising 52.60 points (0.96%) to 5541.80.

Investor concerns over rising inflation are diminishing, to be replaced by those surrounding slowing growth, Richard Urwin, head of asset allocation & economics at BlackRock, has asserted.

The FTSE100 has started well this morning with investors buoyed by lower oil prices and a strong Wall Street session on Friday. London's blue-chip index is currently 24.50 points (0.45%) higher to 5513.70.

Travel-related companies have helped the FTSE end the day up 11.70 points (0.21%) to 5489.20, after a volatile day.