Economics / Markets

In London, markets made a strong recovery as investor worries over debt markets calmed and the FTSE 100 closed up 109.9, or 1.81%, at 6,196.

In London, the FTSE 100 made a strong start to the day after news that the US Fed might cut interest rates and was up 53.9 points, or 0.89%, to 6,140.

GROWTH stocks will benefit from short-term investor caution and a medium term slowdown in the European economy, according to Arjan Palthe, senior portfolio manager of ABN AMRO's Europe Equity Growth fund.

It was another up and down day for the FTSE 100 as high metal prices led many miners to gains - with the index closing on 6086.1, a 7.4 point increase, or 0.12%.

The FTSE 100 started with a flurry of activity this morning but has continually slipped lower, currently down 39.8 points, or 0.65%, to 6038.9.

The FTSE closed at 6078.7p this afternoon after rising 14.5 points, or 0.24%.

The Fed's decision today to cut banking lending rates by 0.5 percentage points had the desired effect on stock markets with the FTSE regaining some of this week's losses and the Dow Jones rising the most in a week.

The FTSE 100 is starting to claw back some of the stellar losses incurred in recent days, despite a sharp fall in Asia overnight - the index is currently 56.4 points up, or 0.96%, to 5915.3.

FRANKLIN Templeton has sought FSA approval for the launch three new SICAV funds - Templeton Global Absolute Return, Franklin Strategic Income and Franklin Natural Resources.

A MAJOR banking crisis is on the cards and the stockmarket is set for a further 20pc decline, according to Ken Murray, manager of Blue Planet's Worldwide Financials Investment Trust.