Economics / Markets

A late decline on Wall Street has translated into a sluggish start for London markets this morning, with the FTSE100 currently down 48.10 points (0.85%) to 5618.

London markets were lifted after a rights issue announcement from Barclays helped the financial sector, and the FTSE 100 added 31.4 points (0.56%) to 5,666.1.

Despite their role in helping the FTSE fall well below 6,000 over the last few weeks, banks are this morning helping propel the index into the black.

The FTSE staged a mini fightback to close only marginally down on 5,651, a drop of 15.6 points, or 0.28%.

Fears over the upturn in inflation have been overdone and the acceleration of price pressures will prove to have been a blip, once oil price increases slow, according to City Financial's Ian Williams.

News the Clive Cowdery-led Resolution Ltd is looking to control lender Bradford and Bingley has fuelled a positive start for London markets this morning. B&B itself is 14.39% ahead this morning, to 75.50.

In London, markets made a small recovery after last week's poor trading, and the FTSE 100 climbed 46.4 points (0.83%) to 5,667.2.

Matthew Merritt, head of strategy at Insight Investment, has commented on the impact inflation is having on the global markets.

The FTSE100 has given up a strong early start in mid-morning trading, with HBOS continuing to slide below its rights issue level. The blue-chip index is currently just 4.50 points (0.08%) higher to 5625.30.

BRIC countries now account for nearly half of the world's steel consumption, according to the International Iron and Steel Institute.