Markets bounce back after S&P US downgrade

Global markets have marginally recovered after yesterday's surprise Standard & Poor's downgrade of the outlook for US debt caused widespread falls.

The S&P 500 fell the most in a month, while the US dollar dropped against the euro, yen and sterling. Today, the Dow Jones index opened 0.36% higher, recovering 44 points to 12,246, while the S&P 500 climbed 0.33% to 1,309. The Nasdaq climbed 0.34% to reach 2,745. S&P's warning shocked the market, as the US has widely been considered a AAA "benchmark sovereign risk", putting its status under question for the first time and reflecting the unsustainable debt levels and risks of political wrangling over a fiscal consolidation policy. European markets have also rallied today, with the...