Economics / Markets

The takeover of Alliance and Leicester this morning fired the FTSE ahead as markets bounced once again, but it dropped back this afternoon, with the index closing at 5300.40, up 38.8 points or 0.78%.

M&G is preparing to launch Global Dividend fund, an equity income offering which cherry-picks from publicly-listed companies worldwide.

A host of takeover offers have sent the FTSE100 skyward this morning, currently 90.60 points (1.72%) higher to 5352.20.

In London, markets climbed after losing over 2% yesterday and by mid-morning the FTSE 100 was up 39.2 points (0.73%) to 5,446.

London markets are down once again with the FTSE 100 losing 122.80 points (2.22%) to 5406.80.

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.