Germany

Following an apparently disappointing outcome in 2012, there is greater optimism over growth prospects for the UK and other economies in 2013.

INFRASTRUCTURE

Germany's GDP slumped by the most in four years in Q4 2012, with French, Italian and Japanese growth also contracting more than expected on the quarter.

Germany's AAA credit rating will come under increasing scrutiny this year as investors shift their focus, according to Cosimo Marasciulo, head of government bonds and FX at Pioneer Investments.

European equities have their attractions but the continent's economic position will disappoint investors for years to come, according to Carmignac Gestion's Frédéric Leroux.

ASSET ALLOCATION

BENCHMARKS

GLOBAL GROWTH

The FTSE 100 has reached its highest level since March following positive consumer data from Germany and signs of improving growth in China.

REDWOOD