Chinese economy

Investors were encouraged by a surge in the Chinese stock market as the nation's main index logged its biggest gain in eight weeks. In the U.S., a report showed that the economy expanded at a much faster pace than previously estimated in the second quarter.

Energy stocks were among the biggest gainers as oil climbed back above $40 a barrel.

Investors have been gripped by an increasing sense of unease this week, largely because of the uncertainty related to China. Since early summer, Chinese stocks have taken a battering but global markets haven't responded much — until now.

Following last week's decision by the country's monetary authorities to reduce the value of the yuan, China's currency, stock markets have really taken a hit.