Economics

European Central Bank president Mario Draghi has joined the ranks of policymakers calling for Greece to be given debt relief as the central bank extends its liquidity lifeline to the country's banks.

Chinese equities have rallied strongly after it was revealed state banks have lent some 1.3trn yuan ($209bn) to the country's margin finance agency in the latest step to prevent a market freefall.

J.P. Morgan Asset Management's Stephanie Flanders has said that investors should "expect less of everything" in future - including investment returns - because of the weakness of the global economy.

Greek banks could open for the first time in weeks as the nation's parliament passed through the fresh austerity measures required to secure a €86bn bailout package from the eurozone.

Inflation falling back to zero should lead to a further boost in consumer spending throughout the rest of the year, according to industry commentators.

Housebuilders' shares have taken a dive in early afternoon trading after Bank of England governor Mark Carney said a hike in interest rates is "moving closer".

UK CPI inflation fell back to zero last month, down from 0.1% in May, as the prices of clothing, fuel and food all fell.

The FTSE 100 has bounced at the open after all-night talks over a new rescue package for Greece eventually yielded a deal.

The FTSE 100 has risen 1.3% in morning trading as risk appetite continues to approve ahead of the pivotal Eurogroup summit on Greece this weekend.

The Dow Jones fell to a five-month low last night, with traders having earlier been rattled by a four-hour long suspension of the New York Stock Exchange.