FTSE

European bond and stock markets saw a sharp sell-off on Monday after a shock result from the Italian election, where no political group managed to win a majority vote.

Neptune founder Robin Geffen has blamed an underweight to financials for the recent poor performance of the £922m Neptune Income fund.

Christian Gardner, investment analyst at StructuredProductReview.com, compares four kick-out plans from different providers.

Managers are setting up portfolios for a pull-back in equity markets, looking at put options and moving more defensive as several indicators post sell signals.

Analysts at Citigroup have hiked their 2013 FTSE 100 forecast to 7,000, suggesting the UK's blue chip index can still add another 10% by the end of the year.

EQUITIES

RBS shares have continued a pullback that began in earnest earlier this week as the FTSE moved back below 6,300 in morning trading.

The euro has hit a nine-month high against sterling after UK industrial output grew less than expected in November.

Lloyds Banking Group helped the FTSE 100 gain 6% over 2012 and reverse the losses of the previous year.

London's leading share index has opened flat in early trading, with investors cautious as Greek default fears resurface.