UK

Standard Life Investments' Ed Legget has bought into Barclays in both his £447m UK Equity Unconstrained and £67m UK Equity High Alpha funds to take advantage of its depressed share price.

Income sector heavyweights return to form after paying the price for anti-cyclical stance.

HOW THE US DOWNGRADE WILL HIT INVESTORS

The UK's major banks remain on course to meet their targets for lending to businesses as part of their commitment to Project Merlin.

ON UK INCOME

Castlestone Management chief executive Angus Murray is to step down, replaced by director of global sales Jerry Devlin.

Castlestone is to wind up its listed funds business, consisting of four portfolios, three of which were suspended earlier this year.

The FTSE 100 climbed this morning and Asian and US markets rallied strongly overnight as the Federal Reserve announced it would hold interest rates at close to zero until 2013.

VIDEO: MARKET TURMOIL

Banks added to market woes last week with the UK's major players reporting a raft of losses prompted by PPI claims and the European debt crisis.