UK bank shares have jumped following last night's announcement of a £100bn stimulus package for the UK economy.

Investment boutique Polar Capital has hired two managers to launch a global equity fund in the company's first foray into the sector.

Investment boutique Polar Capital reported a growth in profits for the year after attracting over $1bn of net inflows, despite caution over the eurozone debt crisis.

Polarised views over the eurozone are dangerous for investors and increase their risk of getting burned by the markets, said Aberdeen's Aidan Kearney.

Spanish and Italian bond yields have continued to race ahead following the European Union's bailout of the troubled economy's banking system.

Jim Rogers, the chairman of Rogers Holdings, has described the bailout of the Spanish banking sector as "absurd economics" in a scathing attack on the European Union's approach to the crisis.

This year is turning into a repeat of 2011, according to JPM's Nick Gartside, who said the absence of a strong trend has led to another year characterised by swings between good and bad days.

European ministers' decision to agree a bailout for Spain's banking sector at the weekend has boosted markets, but managers remain cautious on the the extent to which it will solve the eurozone's long-term problems.

Oil futures have risen to a five-month high on hopes of stronger demand for fuel following the announcement of the Spanish bailout.

Pictet Asset Management's Adrian Hickey, head of Japanese equities, highlights five attractively valued small-cap stocks set to benefit from the nation's post-earthquake reconstruction spend.