FTSE

The FTSE 100 has dived below 3,700 this morning as the banking sector slides on HSBC's plans to raise £12.5bn from investors.

Banks have taken an early hammering this morning as the FTSE 100 slides 1.64% by 9:47am.

Shares rose in London this morning, continuing yesterday's late rebound, with Royal Bank of Scotland (RBS), Barclays and Lloyds Banking Group leading the way.

Despite turbulent mid-day trading, the FTSE100 built on early gains to rise 34.73 points (0.91%) to 3,851.17 shortly before 3pm.

Shares rose in London this morning after a late rally in New York helped push the Dow Jones up more than 200 points on Tuesday.

The Dow is marginally up despite US consumer confidence plummeting to its lowest ever.

Stockmarkets around the world plummeted on Tuesday following staggering overnight losses on Wall St.

The FTSE's bright early start has evaporated this afternoon with 3i and Rolls-Royce blighting a strong session for financials.

Royal Bank of Scotland has climbed more than 16% in early trading this morning after weekend reports suggested it could offload up to a quarter of its non-core businesses.

The FTSE 100 was up a fraction in early trading after falling to a three month low at the end of trading on Wednesday.