FTSE holds ground after post-Twist sell-off

London's blue chip index stood firm in early trading today after yesterday's global sell-off.

The FTSE 100 was up 0.66% as markets opened this morning before falling back to 5032,66 in early trading.

Yesterday, it fell 4.7% to 5,041.6 to its lowest close for a month, as investors across the globe reacted to Operation Twist and the Fed's bleak accompanying warning on the economic outlook.

Winners in London this morning included Inmarsat (up 1.66%), HSBC, Lloyds and Vodafone.

Markets had continued their hasty retreat overnight with Asian shares tumbling sharply to close lower after a day of woe in the West.

Shares in Japan and Hong Kong tumbled, ending over 2% down, after a brutal sell-off in the UK, Europe and US.

The Nikkei shed 2% or 180 points, closing at 8,560, while the Hang Seng index dropped 2.3% or 419 points, to 17,492.

Investors in Asia sent shares sliding as fears continue to mount over a global recession, with a lack of growth in major economies - and mounting debts - leaving many worrying a severe downturn is coming.

Wednesday's move by the Federal Reserve to announce a series of purchases of long-dated bonds - exchanged for short-term treasuries - has sparked this leg of the downturn, with investors disappointed about the lack of more QE.

Economists have since criticised the policy and said it will not help stimulate economic growth, while politicians - including Prime Minister David Cameron - have warned the global economy is on the brink of a rout.

Investors have also been spooked by the Fed's accompanying comments, after it delivered a bleak economic outlook.

The dire warnings led to a sell-off in the US alongside Asia, with the S&P 500 dropping 3.2% or 37 points, finishing the session at 1,129.

The Dow was also down heavily, shedding 3.5% or 391 points, to 10,733.