The FTSE has made a better fist of it today and is showing strength relative to other major indices. The relatively heavy weighting in energy stocks is pushing the UKs benchmark index higher, with help from resurgent resource stocks such as Antofagasta. Overall though the sun isnt shining on all global equities and the FTSEs gains could easily be erased between now and the close.

Please find below the Morning Report from David Evans, market analyst at BetOnMarkets.com

The half year report card for global stock markets was not one to be proud of. The first half of 2008 was the worst first half to a year for the Dow Jones Industrial Average since 1970, when the index was down 14.60%. The 14.44% decline of 2008 is actually the tenth worse performance since 1900.

Financial markets were a sea of red numbers last week as the classic ‘Fade the Fed’ trade played out. The initial reaction to Wednesday’s US interest rate decision was neutral to positive, then the selling set in and hardly stopped. Thursday’s mini rally did a very poor job of papering over the cracks in the global economy.

It was yet another tough week for global stock markets, with the Dow Jones & S&P 500 declining 3.78% on the week and the FTSE down 3.37%. With oil rallying $4, renewed trouble in the financial sector, downgrades to monoline insurers and trouble in the Middle East, markets encountered an ugly storm on Friday.