UK markets were firmer today, reaching new highs for 2012 as investors went to risk-on mode, despite the threat of a stand-off between Greece and its bondholders.

Credit rating agency Moody's has placed Tesco's long-term debt rating under review for a possible downgrade following its recent profit warning.

M&G's bond fund star Richard Woolnough said the impact of eurozone failure and the potential introduction of trade barriers by major economies are the two greatest threats to markets in 2012.

Shares in UK oil major BP were off more than 3% today as investors fretted over a warning from a well known analyst that the settlement for 2010's Gulf of Mexico disaster could be well above estimates.

Investec Asset Management's Bradley George has revealed the three commodities he expects to outperform this year as the market starts to look through the eurozone crisis to focus on fundamentals.

Internet giant Google saw shares plunge last night after its latest earnings update disappointed investors.

Gilt yields have fallen to another record low as investors' appetite for UK debt remains strong amid eurozone woes.

US stocks on the S&P 500 have made their best start to the year for 25 years, according to data from Bloomberg.

The UK may have to fork out £17.5bn to plug a funding shortfall at the International Monetary Fund (IMF) after the organisation warned yesterday it needed additional funds to tackle the eurozone crisis.

M&G Investments bond manager Richard Woolnough has revealed he is currently favouring US treasuries over gilts, as the latter are already priced for more quantitative easing.