Markets

Chinese stocks sank deeper into bear market territory on Tuesday as fears over a credit crunch in China escalated.

It is "inevitable" Italy will need an EU bailout in the next six months, according to analysts at the country's second largest bank.

Investors have ploughed more than £34bn into underperforming funds which have severely lagged peers over the past three years, the latest RedZone report from Chelsea Financial Services reveals.

ON UK INCOME

The FTSE 100 has continued to sell off in early trading on Monday following further falls in Asia, as investors continue to dump stocks on fears QE will be withdrawn in the US.

The Bank for International Settlements (BIS) has warned spiking bond yields across the world threaten trillion of dollars in losses for investors and a fresh crisis for banks unless they are braced for the shock.

Gold is likely to suffer from further sell-offs in the short to medium term as investors remain focused on an end to quantitative easing, Steve Russell, investment director at Ruffer, has said.

Goldman Sachs and Morgan Stanley have downgraded a number of asset management firms on fears some fund groups will see net outflows for the second quarter of this year.

The FTSE 100 has halted its two-day slide as investors buy back into equities following yesterday's sharp sell-off, with Lloyds and other financials leading the pack.

Royal London Asset Management's Martin Cholwill is backing wealth managers to outperform in the financial services space as he looks for stocks set to benefit from ‘survivor bias'.