Economics / Markets

Profitability amongst financial services firms fell at a record pace in the three months to early June, while business volumes declined at the fastest rate in 17 years, according to the latest Financial Services Survey from the CBI and PricewaterhouseCoopers...

London markets opened better than expected this morning allaying fears stocks could follow another Wall Street slump on Friday. The FTSE100 is currently 18.10 points (0.33%) ahead to 5548.00.

Mining and oil stocks helped London's blue chip index to close just above flat - up a scant 5.87 points, or 0.1% -- as oil prices rose again, and traders contended with earlier falls on Asian markets and declines on the Dax and CAC-40.

London markets have opened lower again this morning after record oil prices and financial concerns led to 24-hours of carnage for global indices.

Shares in the London Stock Exchange Group (LSE) plunged almost 13% to 828.5 on Thursday.

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.