Bank shares rally as Italy waters down windfall tax; UK heads towards five years of lost economic growth – as it happened

Rolling coverage of the latest economic and financial news

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Europe's Stoxx 600 shares indes has risen to its highest level in a week, lifted by Italian banks after Rome said it would cap its new windfall tax.

Shares have risen in London in morning trading, with the FTSE 100 index gaining 56 points or 0.75% to 7583 points.

European markets are trading higher with the FTSE MIB in Italy outperforming. Italian banks are clawing back some of yesterday's declines after the government watered down its windfall tax plans. Unicredit, Intesa Sanpaolo and BPER Banca are all trading higher by over 2%.

In the UK, Coca-Cola HBC is near the top of the FTSE 100 after raising its revenue guidance while Flutter is towards the bottom after its half-year results. The owner of Paddy Power and Betfair is planning to list in the US possibly later this year or early next year.