UK banking shares dragged the FTSE 100 lower this morning as sentiment struggled following J.P. Morgan's revelation that it lost $2bn in a trade which went awry.

UK funds could share a $5bn windfall after the European Court of Justice ruled foreign investment funds that invest in French companies should not be liable for a discriminatory withholding tax on dividends.

The Bank of England's Monetary Policy Committee has resisted calls for further quantitative easing and has left its programme of stimulus unchanged, while holding rates.

Investors in Europe are treading carefully today after some steep losses across equity markets so far this week, with Spain's pledge to support its banking system putting a stop to selling for now.

Markets in the US and Asia fell yesterday after a tough day for European shares which left many indices sharply lower.

Spain has taken a 45% stake in Bankia, the country's third largest bank, following another day of sharp falls in the country's equity markets and gains in its bond yields.

'Full scale panic' is once again returning to markets following the Greek election, with safe haven bond yields - including gilts - likely to continue setting new record lows, said M&G's Ben Lord.

Yields on UK government debt are trading at an all-time low amid fresh panic in Europe, which has sent equity markets reeling.

M&G Investments, the country's largest asset manager, saw its net inflows rise 5% to nearly £1.8bn in Q1, as parent company Prudential also reported a jump in sales.

The Financial Ombudsman Service (FOS) has ruled against an adviser who recommended clients invest in cells of the Stirling Mortimer fund range.