1557 GMT

European stock markets closed lower after disappointing economic data from the US and the ECB's decision to maintain interest rates at current levels offset earlier gains following the US Senate's approval overnight of a $700 billion bank bailout plan. Traders in the City of London reflected that the bailout battle was by no means done, with the lower house still needing to accept the plan, and that even if it did the bailout still has to be sufficient to thaw frozen credit markets for it to have any real lasting impact. In London the FTSE 100 fell 1.8 per cent to close at 4,870.34 points, in Paris the Cac 40 lost 2.25 per cent to 3,963.28 points and in Frankfurt the Dax was 2.51 per cent lower at 5,660.63 points.

1450 gmt

In New York the Dow Jones is down over 2 per cent, or 234.09 points, to 10,596.98 after the government reported that the number of people seeking unemployment benefits rose last week to a seven year high. Concerns about the US economy were also heightened after data showed that US factory orders tumbled in August. The Standard & Poor's 500 index also fell over 2 per cent, down 28.29 points to 1,132.77, as did the tech heavy Nasdaq, down 47.78 points at 2,021.62

1415GMT

Going into the afternoon European markets took a downward turn as enthusiasm wained in light of comments from Jean-Claude Trichet, the head of the European Central Bank, who voiced concern about the eurozone's growth. The ECB said it was leaving interest rates unchanged at 4.25 as expected. The FTSE 100 lost 18.70 points to 4,940.89, Germany's Dax 40 was 59.87 points lower to 5747.46 and France's Cac 40 was 23.66 points lower at 4030.88.

0955 GMT

Mid morning trading and the FTSE 100 has now broken through the psychological 5,000 barrier, up just over 1 per cent, or 51.65 points, to 5,011.24, with banks still leading the charge.

European markets continue to advance, particularly financials, lifted by comments from UBS that it expects to make a profit in the third quarter and market talk that the owners of French bank Natixis could buy out its public shareholders.

Traders are also eagerly awaiting the European Central Bank's rate decision at 1145 GMT. The bank is expected to keep interest rates on hold at 4.25 per cent but its views on the global financial crisis will be under scrutiny.

0750 GMT: The FTSE 100 moves up 34.44 points to 4994.03. Shares in the UK's biggest banks are making good ground, with HBOS leading the index, rising over 10 per cent, or 16.1p, to 164.2p. Lloyds TSB is up 10p to 260p and Barclays is up 10p to 352p. Marks & Spencer, the high street retailer, is also among the risers, up 16.25p to 226.5p, after a trading update was no worse than feared. On the continent France's CAC 40 is up 22.56 points to 4077.1 and Germany's DAX is up 16.48 points to 5822.81, with banks advancing on both stock markets.

0715 GMT: Subdued start to European trading with investors taking a cautious view on the global economy, despite round one of the US bailout being voted through. Falls on Asia markets combined with grim London housing figures have done nothing for sentiment. Almost 15 minutes into trading and the FTSE 100 is down 3.76 points to 4955.83, France's CAC 40 index is up 1.96 points to 4056.5 but Germany's Dax is down 11.55 points at 5794.78.

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