FTSE

US stock markets rose cautiously yesterday on the back of the Federal Reserve's historic decision to cut interest rates to 0.25%.

The FTSE 100 immediately fell from an opening of 4,277 to below 4,255 this morning, amid speculation that the Fed will today halve US interest rates to 0.5%.

Shares in private equity giant 3i Group plunged 10% as HBOS prospered on a mixed Monday for the FTSE.

London markets were boosted by oil companies this afternoon after a report from the International Energy Agency (IEA) forecast rising demand in 2009.

A cooling off in demand for insurance stocks dragged the FTSE 100 down by over 0.5% to below 4,360 upon opening this morning.

London trading worsened as Friday afternoon as after figures revealed more half a million jobs were cut in the US in November.

UK share prices reacted badly to the Bank of England's 1% rate cut and the FTSE100 witnessed a sharp drop following the announcement.

Beleaguered fund manager New Star's share price has plummeted again this morning as investors are left reeling from another dire 24-hours for global stock markets.

Despite the gloom, most IFAs still expect double-digit growth from the FTSE 100 in six months' time, according to a survey carried out by Rowan & Co.

With-profits final bonuses have been cut for NFU Mutual policyholders as a result of heavy stock market losses.