US shares have built on yesterday's gains in early trading after data showed US retail sales posted their biggest gain for four months in July.

France has reported annualised GDP growth of zero in the second quarter, raising concerns over the government's ability to meet its financial targets.

GMO's Jeremy Grantham has said the S&P 500 is still heavily overvalued, and "worth no more than 950".

Investec's co-head of credit Theo Stamos has left the firm and handed over his responsibilities to other managers.

THE THREE MAJOR ISSUES FACING THE US

US markets have opened higher after a calmer atmosphere saw the FTSE 100 recover the day's losses.

The FTSE 100 has entered bear market territory, having now fallen 20% from recent highs after the index lost as much as 5% in early trading on Tuesday.

Bank of America's share price fell by 20% as US financials were routed in Monday trading over growth fears and S&P's downgrade of the US credit rating.

Major companies favoured by leading European fund managers are facing severe price pressures as the global flight to safety propelled the Swiss franc to new heights today.

Fidelity's Anthony Bolton has said this week's tumultuous equity markets should be seen by investors as a "time of opportunity".