Market roundup

Bargain-hunters helped lift the FTSE 100 by more than 1% on Friday.

In Europe, shares of financial stocks such as Barclays, Deutsche Bank and Credit Suisse advanced.

As the dollar strengthened against the euro, gold prices fell slightly. Gold, which is priced in dollars, has been closely tied to the fortunes of the greenback; when the dollar drops, it cuts the earnings of gold producers, who hike their prices to compensate. Conversely, a rise in the dollar has the opposite effect. Spot gold is trading around $909 per ounce.

Digby Jones, former director general of the Confederation of British Industry and now an adviser to the government, has warned that the tax crackdown on non-domiciled citizens will hurt the British economy. His voice adds to the volume of criticism about the crackdown amid fears of a large exodus of non-doms at what would be the worst possible time in a slowing UK economy.

As a sign of how sovereign wealth funds are now big news, the FT leads with an item saying that China Investment Corporation is close to a deal with JC Flowers, the US private equity group, to put $4bn into a fund investing in struggling financial institutions.

A survey by Bloomberg says that the risk of a recession in America is now an even bet.