Inflation in the emerging markets will rise further over the next three months followed by further tightening measures, while the US has seen a rapid rise in growth expectations, says Jeremy Podger at Threadneedle.

Persisting unrest in Libya has dragged global markets down, with London's leading share index dropping back below the 6,000 mark reached yesterday afternoon.

Emerging markets firm Charlemagne Capital has launched the Magna MENA fund, which will invest up to 90% in Gulf Co-operation Council regions to play higher oil prices.

BP has a sealed a $7.2bn deal with Reliance Industries, taking a 30% stake in the Indian energy firm.

London's leading share index had a sluggish start this morning, while European markets fell on uncertainty over the Middle East and oil supply.

Inflation is the only way to reduce the high debt to GDP forecast for the UK and US, which is set to match that of Greece by 2014, says Distinction Asset Management's Ana Armstrong.

London's leading share index was boosted this morning by a two-year high on Wall Street, following robust earnings reports and positive economic data.

Brent crude oil has soared to $104 dollars a barrel amid fresh concerns over the Suez Canal in the Middle East.

London's leading share index retreated slightly this morning, following a muted performance in the US, which saw the lowest share turnover so far this year.

Emerging markets are set to continue delivering higher growth and lower volatility than developed markets, with EM equities to return more than 10% per year until 2015, says Barclays Capital.