Economics / Markets

In London, shares made further gains but the benchmark FTSE 100 index remains in bear territory, up 90.1 points (1.7%) to 5,376.4.

The global downturn this year and into 2009 is expected to be less fierce than previously feared, according to the International Monetary Fund (IMF).

The Royal Bank of Scotland (RBS) continues to dominate the FTSE100 winner's table but the index has opened tentatively, dropping 18.2 points, or 0.34%, to 5,268.1.

The FTSE100 continued its positive start on Thursday and is approaching a 3% gain just 90 minutes before the end of trading.

The FTSE100 surged on opening this morning on the back of a large bank-led market rally in the US overnight. London's blue-chip index is currently 82.80 points (1.61%) higher to 5233.40.

Continued concern over the banking sector hit London markets today, with the FTSE 100 falling a further 21.3 points (0.41%) to 5,150.6.

The FTSE100 has given up most of its strong start in mid-morning trading, with more fears for financials cancelling out the large oil price falls. London's blue-chip index is currently 7.5 points (0.15%) higher to 5,179.40.

London markets dropped severely as investors worried about the impact of the weak US mortgage market, with the FTSE 100 falling 128.5 points (2.42%) to 5,171.9.

The annual rate of CPI inflation hit a sixteen year high in June, rising from 3.3pc to 3.8pc.

Renewed concerns on the health of US banking institutions have spooked markets across the globe, with the FTSE100 sharply lower in morning trading.