India's economy grew at its fastest rate for more than two years in Q2, official data reveals.

World demand for gold shot up by more than a third in the second quarter as recession-spooked investors continued to look to the commodity as a safe haven.

UK inflation dropped marginally to 3.1% in July but remains well above the Government's 2% target.

The FTSE opened 40 points higher on Friday as positive economic news from Germany and France buoyed investors.

The Consumer Protection and Markets Authority (CPMA), one of the bodies set to replace the FSA from 2013, will be subject to audit by the National Audit Office (NAO) under rules proposed by the Treasury today.

The UK's four major banks have passed EU stress tests, although five Spanish banks failed, the Committee of European Banking Supervisors (CEBS) said.

Revised US economic forecasts and disappointing GDP figures from China hit European markets in early trading on Thursday, with the FTSE falling 0.6%.

Controversial investor Brian Myerson is to be "cold shouldered" from any takeover dealings in the UK for three years after he failed to overturn a ruling that he had breached the Takeover Code.

Prosecutors have raided 13 branches of Swiss bank Credit Suisse in Germany in connection with allegations staff helped clients evade taxes.

Hopes of a strong Q2 earnings season boosted investor sentiment on Tuesday, sending the FTSE above 5,270.