IMF chief Christine Lagarde has ramped up the pressure on Greece's private creditors to put a better offer on the table as debt swap negotiations continue this week.

Investors who took advantage of a €7.5bn rights offering by troubled Italian bank UniCredit are reaping the benefits as the company has delivered the largest equity return of any stock in the Euro Stoxx 50 index since 10 January.

UK stocks were muted mid-morning as investors took profits and fretted once more over the outlook for Europe and the Greek debt deal.

European stocks advanced this afternoon following the US Federal Reserve's interest rate outlook, with miners driving the FTSE 100 to build on earlier gains.

Gold will remain the best real asset play for investors if central banks continue to print money and risk debasing their currencies, said Ted Scott, director of global strategy at F&C.

Aviva Investors is set to launch two multi-asset funds for Justin Onuekwusi.

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Mary Chris Gay, co-manager of the £52m Legg Mason US Equity fund with Bill Miller, forecasts a rally of up to 15% in US equities by the end of 2012.

SWIP's Mike McNaught-Davis has temporarily taken over responsibility for the SWIP European Income fund as co-manager Steven Maxwell takes extended sick leave.

The World Bank has warned developing countries to prepare for the "real risk" of the deepening eurozone crisis tipping the world into a post-Lehmans style recession.