S&P 500

ON NORTH AMERICA

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

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

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.

Heavy losses in the battered US markets have spread to the UK and sent the index of 100 leading shares down more than 3%.

European and Asian stock markets declined sharply in Wednesday trading, mirroring overnight falls in New York, on concerns the US recovery is faltering.

The FTSE has plunged into negative territory after disappointing US jobs data reignited fears over the economic recovery.

US markets got off to a mixed start Monday as European nations continued to debate the future of Greece.

Greek prime minister George Papandreou yesterday survived a vote of confidence in his government, sending Asian markets soaring overnight.

European markets rallied this morning on news the European Union will support troubled Greece if it introduces additional spending cuts and a privatisation programme.