Nikkei

The FTSE 100 continued its rally this morning off the back of a strong showing in the US where better than expected earning pushed the S&P 500 through the 1,300 point barrier.

Japan's Topix index posted its worst two-day results since the crash of 1987, as shares continued to sink.

Markets fell across the board at the start of trading today, after Moody's downgraded Spain's government debt from Aa1 to Aa2 with a negative outlook.

World markets have responded positively to Brent crude futures falling by more than $3 after the Arab League said it was considering stepping in to end the crisis in Libya.

Libya unrest has driven Brent crude oil to a 29-month high of $119, causing Asian markets to fall overnight and European stocks to slump as investors take profits.

UPDATE 12pm: The FTSE is up a third of a percent and other key European markets have jumped 1.3% on news Portugal has succeeded in raising £1bn in a bonds auction, easing concerns over the country's need for an EU bailout.

The FTSE 100 has opened slightly up, building on gains on Wall Street and positive employment news in the US.

Banks led the FTSE 100 index 0.6% higher in early trading to 5,704.96 as investors showed their relief after Ireland agreed an €85bn (£72.5bn) rescue package.

The FTSE ignored large gains on Wall Street overnight, falling 0.35% to 5,748.45 in early trading.

The FTSE is slightly down in early trading, with RBS hit by fears it may be exposed to Ireland's economic problems.