FTSE 100

The FTSE 100 has had the best start to a year since 1999 as investors pour billions back into global equities.

The FTSE 100 closed at its highest level since May 2008 yesterday as investors continued to snap up cyclical names, including the UK's semi state-owned banks.

2012 was a mixed year for markets, with developed market equities recovering from a summer sell-off to make marginal gains, while some segments of the property and bond markets outperformed.

Querns' Stephen Whittaker is backing consumer and financial stocks to outperform in 2013, following an overhaul of his income portfolio last year and the departure of co-manager Phil Roantree.

BLUE CHIPS

The FTSE 100 has started to recover during this morning's trading, after its first poor finish since the start of the year on Monday.

HSBC says sterling will weaken this year as it faces a "triple cocktail" of potentially destructive factors from China, the US and the eurozone.

The LIBOR-rigging scandal that engulfed the banks in 2012 further dented their badly tarnished reputation and dealt another blow to public confidence, leaving investors uncertain how to play the sector.

Emerging market stocks rose for the ninth day in a row today on increased investor confidence, driven by positive data from China and the US.

Global equities are rallying hard as strong data from China and a deal to avert the US fiscal cliff give cause for optimism.