FTSE 100

Markets across Europe sold off in early trading, while bond yields in core European countries rocketed towards danger levels, after investors failed to be convinced by an overnight deal to save the eurozone.

Banking and asset management giant Investec has exited the FTSE 100 as part of the latest re-shuffle of the UK's leading share index.

The FTSE 100 is down 1.2% and US markets have also opened lower as investors' hopes for a positive outcome from Friday's EU summit begin to dwindle.

European stock markets opened higher this morning ahead of a crucial eurozone meeting on Friday which could decide the future of the single currency.

UK markets began the session strongly, with the blue chip index putting on more than 1% initially, ahead of key jobs data from the US.

Global stock markets rallied hard yesterday on news of co-ordinated action by major central banks to improve liquidity, but analysts are divided over whether it will lift markets further in December.

The FTSE 100 has moved 3% higher after the world's major central banks announced a move to boost liquidity within the financial system.

US markets have opened 3% higher as investors pin their hopes on the latest promise of eurozone action in the shape of tighter budgetary controls.

The FTSE 100 has reversed this morning's losses to rise over 1% in afternoon trading - buoyed by a surge on Wall Street.

A dire German bond auction rocked markets overnight, with Japan's Nikkei index hitting its lowest level since April 2009 as fears deepened over the eurozone crisis.