London's FTSE 100 Index slid below the 6,500 barrier today as disappointing US economic indicators sent world markets into the red.
The London market surrendered some of this week's gains today as investors turned their attention to US debt negotiations to avoid the so-called fiscal cliff.
Chancellor George Osborne failed to spook investors today despite telling austerity-weary Britons to brace themselves for more spending cuts.
The FTSE 100 Index surged nearly 1% or 54.1 points to 5,627.2 today as it built on yesterday's strong gains.
Supermarket giant Tesco failed to win over investors with its £1billion plan to revive its UK arm today as the grocer followed world markets into the red.
Investors shied away from risk today as the enormity of the task faced by new governments in Italy and Greece sank in.
Rocketing oil and gas prices helped BP to bumper profits yesterday as motorists continue to feel the pain at the petrol pumps.