FTSE 100

Talk of plans to rescue the eurozone's banking system, alongside hopes Greece can remain in the single currency, lifted shares in early trading today.

Markets across Europe set new lows for 2012 yesterday after countries were told by Brussels to prepare contingency plans for a Greek exit.

Reports that China is eyeing a fresh round of stimulus to boost growth in the country helped lift European stocks out of the doldrums Monday.

SMALL CAPS

The FTSE 100 has dropped more than 1% as the Spanish banking crisis intensified, with shares in bailed out Bankia shedding 25% today alone.

An admission by the head of the International Monetary Fund (IMF) that Greece may have to exit the eurozone caused further selling in London today, with shares falling to yet another multi-month low.

US stocks slumped overnight, pressuring the Dow Jones Industrial Average near to a four-month low, as political concerns in Greece continued to cloud the outlook for the global economy.

Markets across Europe suffered more losses this afternoon after Greece reportedly confirmed it has failed to form a coalition government.

US markets have fallen to three-month lows during trading today as the eurozone worries that resurfaced last week show little sign of subsiding.

Investment companies are being urged to issue zero dividend preference shares (ZDPs) rather than rely on banks to provide financing, to help ride out short term market volatility.