Economics

The FTSE 100 is in the black this morning, buoyed by shares including Royal Bank of Scotland which helped the index shrug-off weak Asian markets overnight.

Chinese shares have started the week sharply in the red, with markets off substantially amid ongoing fears about the impact of the US cutting back its stimulus programme.

The pound has fallen further against the dollar in early trading, deepening a slump that began yesterday after the Bank of England reassured investors about the future path of the base rate.

M&G's Stefan Isaacs has pointed to the "surprisingly dovish" statement from ECB president Mario Draghi as a sign the bank may introduce fiscal stimulus sooner than the market expects.

Asian equity markets have followed their European counterparts higher in overnight trading, but investor attention is now firmly focused on the US once again.

The FTSE 100 bounced back this afternoon after a sell-off yesterday, with leading shares recovering from falls amid fresh hopes for a resolution to the crisis in Portugal.

Legal & General Investments has axed Robert Churchlow, the group's head of UK equities, from his two UK mandates, with the manager's future now uncertain after the company declined to comment on whether he still worked for the firm.

Portugal's financial crisis worsened today as the country's bond yields spiked above 8% and shares plunged, following the resignation of several key politicians.

Markets across Europe fell deep into the red today as the Portugal crisis worsened and investors reacted to a big sell-off in China overnight.

The FTSE 100 started the second half of the year positively after promising Asian numbers were followed up by a strong showing from the UK's own manufacturing sector.