Asian indices responded to the move by Standard & Poor's to downgrade Italy by falling overnight.

US markets fell 2% at open, adding to the grim picture in Europe, as investors continued to fret over the future of Greece.

GAM's top performing £1.5bn GAM Star China Equity fund has been re-opened to investors less than a year after the group soft-closed it.

ONE TO WATCH

Aviva Investors manager Justin Onuekwusi has taken over two funds following the departure of Jason Josefs, and is now running a total of five portfolios for the group.

Manager of the Rathbones' Global Opportunities fund has ramped up his cash weighting to 15%, but plans to put it to work over the coming weeks.

International Energy Agency cuts 2011 forecast by 200,000 barrels and 2012 estimate by 400,000, although price not expected to collapse.

Strategists have predicted inflation will fall back to target in the New Year when the VAT rise is stripped out of figures, freeing the Bank of England to pump in more money to stimulate the economy.

Andrew Lake, manager of Aviva Investors' High Yield Bond fund outlines the stocks to snap up and ones to avoid during a gloomy period for the UK consumer.

Today's pledge by five central banks, including the Federal Reserve and the Bank of England, to raise the liquidity of commercial banks has boosted markets worldwide.