Markets

The FTSE 100 was trading at its highest level since early August this morning, as optimism over the crisis in Europe continued to cheer investors.

The week has once again been dominated by the eurozone crisis, with a crucial meeting taking place today, while the regulator has warned the Arch cru debacle may not be anyone's fault.

Economist Roger Nightingale has warned the UK economy is facing the real possibility of a depression after policymakers failed to act quickly enough to tackle the downturn.

Mervyn King has warned Chancellor George Osborne the UK recovery is facing a growing threat from the euro crisis and deteriorating conditions in financial markets.

The FTSE 100 was lower mid-morning as investors waited nervously for a crucial vote in Germany on the expansion of the European Financial Stability Facility (EFSF).

European markets fell back into the red on Friday as investor concerns about the global economy returned.

Operation Twist - the Federal Reserve's latest attempt to boost economic growth in the US - sent markets globally tumbling overnight, with major indices in the US and Asia shedding up to 3%.

London's blue chip index remained in the red mid-afternoon despite gains in the US, with investors cautious ahead of the all-important meeting of the Fed in the US.

Asian indices responded to the move by Standard & Poor's to downgrade Italy by falling overnight.

US markets fell 2% at open, adding to the grim picture in Europe, as investors continued to fret over the future of Greece.