FTSE 100

Sharp falls in bank and mining stocks have dragged the FTSE 100 down a further 3.4% today as global markets continued to struggle.

River & Mercantile's Hugh Sergeant said negative investor sentiment is pushing up equity risk premiums to credit crunch levels despite strong balance sheets among UK companies.

European and Asian stock markets declined sharply in Wednesday trading, mirroring overnight falls in New York, on concerns the US recovery is faltering.

TIP OF THE WEEK

F&C Investments' UK equity head Peter Lees has been moving up the market-cap scale in his £210m UK Alpha fund, upping exposure to FTSE 100 names by 15% since the start of the year.

US and Asian markets fell overnight on fears the US government will fail to resolve its debt crisis, ahead of a crucial vote by the House of Representatives today.

European markets have surged on reports eurozone leaders will back a 'selective default' on Greek debt.

News Corp's shares jumped 5.5% following yesterday's parliamentary hearing with the group's chiefs Rupert and James Murdoch.

Bank shares climbed in early trading, regaining some ground after Friday's stress test results caused sharp falls in the UK's major banks.

Markets have remained lower this afternoon as negative reaction to European bank stress tests continue to drag on the FTSE 100.