Equities

Rating agency Moody's is preparing to downgrade several UK banks this evening, including RBS, Barclays and HSBC, according to reports.

China is looking at relaxing rules for foreign investment in its financial markets in a bid to stimulate its domestic economy.

The Federal Reserve announced plans to extend Operation Twist by $267bn as it cut its growth forecast for the US economy from 2.9% to 2.4% in 2012.

UK Money Market funds swung back in to favour in May as investors looked to shelter money amid the ongoing eurozone debt crisis.

HSBC Income fund of funds manager Julian York said his policy of "not looking to shoot the lights out" has helped guide him to the top quartile of the IMA Mixed Investment 20-60% Shares sector.

Tom Naughton (pictured), manager of the Prusik Asian Equity Income fund, outlines five lesser known equities offering a high dividend yield, which are largely immune from the macro uncertainties plaguing developed markets.

Wall Street opened higher this afternoon as investors anticipated central bank stimulus measures would be forthcoming when the Federal Reserve's policy meeting concludes on Wednesday.

PIMCO's Bill Gross is wary of German bunds, saying there are few scenarios which they can do well and eurozone turmoil is hurting German balance sheets every day.

Investec has extended its Latin American equity range with the launch of a smaller companies fund run out of the Americas by LatAm specialist Compass Group.

Henderson Global Investors' bond fund manager John Pattullo said the current crisis in Spain will result in Spanish bank bondholders taking severe haircuts, after a similar scenario in Ireland last year.