Economics / Markets

The recent 'mini recovery' in the US economy will be short-lived, with US growth of 1.4pc this year slipping to just 0.8pc in 2009, according to the latest global prospects report from the cebr.

A sharp $8 drop in oil prices has revived London markets this morning, with the FTSE100 currently 28.60 points (0.51%) higher to 5631.40.

In London, markets fell over further bad news regarding the economy, including the Chancellor making dire predictions of a tough recession, and the FTSE 100 dropped 33.8 points (0.6%) to 5,602.8.

The FTSE100 slipped more than 1% early this morning as miners feel the pinch of lower metal prices. London's blue chip index has recovered only slightly to currently sit 47.50 points (0.84%) behind to 5589.10.

The FTSE100 has consolidated its position above 5,600 in a positive Friday opening, currently 24.80 points (0.44%) higher to 5626.

The annual rate of inflation in the eurozone edged down to 3.8pc in August, according to Eurostat.

In London, trading surged in the late afternoon to put the FTSE 100 up 73.1 points (1.32%) to 5,601.2 after good news emerged from across the Atlantic.

Recession in the UK is a "nailed-on certainty" and is likely to last into next year, according to Ian Williams, manager of the City Financial Strategic Gilt fund.

The FTSE 100 has plunged 24.60 points (0.44%) this morning to 5503.50, with mining and resources companies leading the fall.

Shares in London rallied after a sell off in early trading, with the FTSE 100 closing up 57.4 points (1.05%) to 5528.10.