Dow Jones

The UK index of 100 leading shares was up in early trading, lifted by rises in all the major global markets.

European markets have fallen sharply this morning with the FTSE 100 down 1.1% or 61.8 points at 5,511.63.

A $3.7bn acquisition by consumer products giant Unilever led European markets higher in early Monday trade, the FTSE 100 adding 0.2%.

Global stocks rallied on Friday on better eurozone news and stronger-than-expected manufacturing numbers in the US.

The FTSE dropped 0.72% to 5,535.8 in early trading as speculation over government plans to introduce a new bank windfall tax hit shares in the sector.

The Dow Jones has made early gains in trading as investors await the Fed's rate decision tomorrow and a possible extension of its quantitative easing programme.

The FTSE 100 had a strong start to the week, up 0.71% or 39.14 points to 5,547.59, supported by news BP had permanently sealed its Gulf of Mexico oil well.

The FTSE 100 failed to respond to broker upgrades and healthy earnings reports in early trading, advancing only six points, or 0.1%, to 5,562.37 points.

Global banking shares drove markets higher today following the outcome of the Basel III Committee meeting to reform the banking sector.

The FTSE 100 rose 0.88% or 48.58 points to 5,550.22 boosted by new financials regulation and positive economic data from China.