Global markets shake off US downgrade

US markets opened higher this afternoon after shaking off losses sparked by yesterday’s surprise Standard & Poor's downgrade of the outlook for US debt.

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.

European markets have also rallied today, with the FTSE 100 climbing 0.67% to 5,910, after posting a 2,1% loss yesterday. The French Cac gained 0.85% to 3,914 and the German Dax rose 0.53% to 7,064.

The price of Brent Crude continued its slide, falling to $119.93 as investors move out of risky assets. It had dropped 0.17% to $121.40 this morning.

Yesterday the S&P 500 fell the most in a month following the cut from stable to negative, while the US dollar dropped against the euro, yen and sterling.

The cut put the country's AAA status under question for the first time,  reflecting the unsustainable debt levels and risks of political wrangling over a US fiscal consolidation policy.