FTSE 100

The FTSE took its early lead from strong gains in Asia rather than muted US markets, up by 0.5% to 5,723.51.

The FTSE 100 was down almost 2% this afternoon as fears over Europe's sovereign debt woes and tighter monetary policy in China continued to weigh on investors.

London's FTSE opened 1.7% down this morning on a poor day for global stocks, following heavy losses in Asia and fresh fears for the Irish economy.

London's leading index of shares added to yesterday's triple-digit gains in early trading on Friday, before dipping into negative territory.

Positive earnings reports from some of the FTSE 100 top players have boosted the index this morning.

The FTSE 100 opened positively in a week set to be dominated by a slew of US economic and political news.

Germany has agreed to give the EU's €440bn (£383bn) bail-out fund permanent status rather than letting it expire in 2013 as planned.

A poor session in Asia this morning and unconvincing display on Wall Street overnight weighed on the FTSE 100 as it opened four points down at 5,673.

ON UK INCOME

Shares pulled back further on Wednesday following a blow for miners and lacklustre performances on Wall Street and in Asia.