FTSE on tenterhooks ahead of German rescue plan vote

The FTSE 100 was lower mid-morning as investors waited nervously for a crucial vote in Germany on the expansion of the European Financial Stability Facility (EFSF).

The blue chip index was off 10.8 points at 5,206.79, while European markets raced higher, as investors speculated whether Germany was going to approve the expansion of the EFSF.

The Dax was up 36.37 points, at 5,614.8, while the Cac 40 gained over 1% to 3,026, up 31 points.

German policymakers - led by chancellor Angela Merkel (pictured) - are voting on further amendments to the EFSF which could see it grow to $2trn, five times its current size.

The plan before the lower house in Berlin today would allow the fund to buy bonds in secondary markets, offer precautionary credit lines and enable bank recapitalisations. It also raises Germany's guarantees to €211bn ($287bn) from €123bn.