Economics

Asian equity markets have followed their European counterparts higher in overnight trading, but investor attention is now firmly focused on the US once again.

The FTSE 100 bounced back this afternoon after a sell-off yesterday, with leading shares recovering from falls amid fresh hopes for a resolution to the crisis in Portugal.

Legal & General Investments has axed Robert Churchlow, the group's head of UK equities, from his two UK mandates, with the manager's future now uncertain after the company declined to comment on whether he still worked for the firm.

Portugal's financial crisis worsened today as the country's bond yields spiked above 8% and shares plunged, following the resignation of several key politicians.

Markets across Europe fell deep into the red today as the Portugal crisis worsened and investors reacted to a big sell-off in China overnight.

The FTSE 100 started the second half of the year positively after promising Asian numbers were followed up by a strong showing from the UK's own manufacturing sector.

US fixed income investors are on course to suffer their worst first half of a year for nearly two decades following the Federal Reserve's remarks around curtailing its enormous quantitative easing programme.

This week has seen further volatile moves in markets - particularly within fixed income as investors unwind positions in government and emerging debt - while Chinese equities also hit the headlines on fears of a slowdown in the country.

A leading member of the US Federal Reserve has tried to calm markets by stressing plans to start tapering its QE programme depend on the economy recovering.

Eurozone countries face a decade of deflation and stagnation if governments fail to tackle debt and slow growth plaguing the region, Standard Life Investments' global strategy head has said.