FTSE recovers some heavy early losses

The FTSE 100 Index recouped earlier heavy losses today after another grim set of jobless figures in the United States fuelled hopes that policymakers will take further action to prop up the global economic recovery.

Rather than trigger a fresh sell-off for world markets, the data showing the US shed another 95,000 jobs in September prompted a recovery as analysts said it will now require a substantial pick up in inflation before the Federal Reserve's next meeting in November to prevent more quantitative easing.