The FTSE has opened trading in positive territory amid signs European policy makers are moving to stem the eurozone debt crisis.
US markets opened lower this afternoon, following falls across Europe today as fears of a Greek default resurfaced once more.
Asian stocks extended a global rally overnight following positive data from the US and China, while the FTSE 100 has begun reversing yesterday's gains.
The Dow Jones has regained some of the ground lost yesterday as positive export data boosted the market.
Global markets have made an encouraging start to the week, with the US opening up sharply, following in the footsteps of the FTSE 100.
The UK's index of 100 leading shares fell 2.76% to below 5,000 this morning, as global markets showed no signs of shaking off fears the West is heading back into recession.
The UK shrugged off another brutal session in the US where the Dow Jones closed 520 points lower in overnight trading after climbing 2%.
Global markets have slipped back into the red after the Dow Jones posted heavy losses on the opening bell, as fears of a double-dip recession intensify.
The FTSE 100 climbed this morning and Asian and US markets rallied strongly overnight as the Federal Reserve announced it would hold interest rates at close to zero until 2013.
US markets have opened higher after a calmer atmosphere saw the FTSE 100 recover the day's losses.