The prospect of an early interest rate rise has pushed sterling over the $1.70 mark
Pound hits highest level since August 2009
Geopolitics pushes gold price up; Japan stock market down
Analysts: Iraq crisis will keep oil price higher
8.46am BST
The pound has now dipped back below the $1.70 mark, after that early morning surge.
It remains close to its highest level since the summer of 2009, with traders reckoning interest rates could well rise before Christmas.
Briefly this morning the UK Pound £ pushed above US $1.70 as the post Carney Mansion House speech surge continues #BoE #CurrencyWars
8.37am BST
With the oil price hovering around a nine-month high, there is lots of chatter about the impact that the Iraq crisis will have on the global economy.
Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo, predicts prices will remain higher for some time.
"It looks like the country is headed to civil war, which will mean a higher risk premium built into oil prices.
This may not mean a stop to Iraqi exports immediately, but it probably will affect Iraq's ability to increase its production rate."
Investors aren't expecting material costs will rise soon and have an immediate impact on companies' profits, but they are wary of these risks in the longer run," said Hikaru Sato, a senior technical analyst at Daiwa Securities.
"The geopolitical concerns are lowering risk appetite."
8.16am BST
Over in Greece, cleaning workers who lost their jobs last summer are reported to have massed at the finance ministry.
They are demanding a meeting with the country's new finance minister, Gikas Hardouvelis, to press their case to be reinstated - having been laid off in Greece's austerity cutbacks.
Protesting (for months and everyday) cleaners have circled FinMin and asking to see the minister. v @dromografos pic.twitter.com/bsAFg7ILjh
8.08am BST
Hungarian airline Wizz Air has abandoned its plans to float on the London stock market - blaming "the current market volatility in the airline sector".
Wizz Air had hoped to raise 200m to help fund its expansion plans. The sight of recent profit warnings from Lufthansa and Aer Lingus - and the rise in the oil price - appear to have forced a rethink.
7.56am BST
Growing expectations that UK interest rates will rise within the year have just driven the pound to its highest level in nearly five years.
The pound hit $1.70 mark in early trading in London.
Pound Strengthens above 1.70: http://t.co/IGcC7HMxe4
Pound Strengthens Above $1.70 for First Time Since August 2009 ! The Football team may not be breaking delf but hey currency is !
7.55am BST
Good morning, and welcome to our rolling coverage of the financial markets, the world economy, business and the eurozone.
Geopolitical fears continues to dominate the markets, after a weekend of heavy fighting in Iraq which saw Sunni insurgents capture the town of Tal Afar in northwest of the country, strengthening their hold.
The crisis in Iraq is lending continued support to the oil price and holding back Asian equities, which are generally lower despite pockets of strength in the technology sector; airlines are among the weaker groups. European futures are generally lower.
The yen is firming on safe-haven attractions.
Further #Iraq insurgent gains. Could be unifying moment if political factions unite to fight ISIS, but fragmentation of country now possible
Concerns still focus on Iraq with T-notes, WTI and gold all higher coming into the EU open
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