Economics / Markets

Analysts were not surprised by the MPC's decision today to keep interest rates on hold at 5pc.

The current European economic climate calls for caution, according to Roger Guy and Guillaume Rambourg, managers of the Gartmore European Selected Opportunities fund.

The surge in commodity prices and the consequent rise in inflation is in large part due to the actions of the US Fed, according to New Star's Simon Ward.

The Standard & Poor's 500 index entered bear market territory for the first time since 2002 on Wednesday, as shares on Wall Street were slammed by renewed mortgage market and economic concerns.

London market recovered after entering bear territory yesterday, with the FTSE 100 climbing 87.8 points (1.61%) to 5,528.3.

Financials are leading a mini-revival for London markets this morning, with banking stocks mirroring the yesterday's strong giants for compatriots across the Atlantic. The FTSE 100 is currently 70 points (1.29%) higher to 5510.60.

Economic growth in the Eurozone was a downwardly revised 0.7pc in Q1, according to data from Eurostat.

Struggles on the FTSE continue today as the index drops 72.2 points, shedding 1.31%, to 5440.5.

The UK economy is on the verge of a recession, according to the results of the British Chambers of Commerce (Q2) Quarterly Economic Survey.

The FTSE100 has entered ‘bear market' territory after being smashed in early Tuesday trading, down 129.20 points (2.34%) to 5383.50.