FTSE 100

The Dow Jones was rapidly approaching a 2% drop in early trading on Monday on fears the recent rally may have been overdone.

London's blue-chip index has suffered a poor start to the week after sharp stock falls in Asia today, with property groups and miners among the early decliners.

The Dow Jones has fallen for the first time in three days as Consumer Price Index figures show the Fed's $1trn injection into the banking system has not led to faster inflation.

Speculation about Middle East investment in UK property firms has boosted the FTSE, which hit a ten month closing high yesterday.

The FTSE 100 soared in early trading thanks in part to better-than-expected results from insurance giant Prudential.

Lloyds' decision to sell Insight Investment to the Bank of New York Mellon for £235m and bring the rest of its asset management business under Swip saw its share price fall 0.3% to 90.72p in early trading today.

The Dow Jones has fallen 1% this morning as investors await the outcome of the Federal Reserve's two-day rate setting meeting.

The FTSE 100 is down slightly in late morning trading despite receiving an initial boost on news Friends Provident has agreed a takeover by Clive Cowdery's Resolution.

In the US, the largest stocks began a retreat after weeks of gains with the benchmark Dow Jones down 19.34 points to 9,350.73 in early exchanges.

The FTSE 100 has fallen sharply in opening exchanges following reports Lloyds may tap shareholders for funds to reduce the cost of participating in the Government's toxic asset scheme.