Markets

European markets edged lower this morning, echoing falls across Asia overnight, as investors showed caution over the outcome of the Greek debt swap deal.

UK stocks were muted mid-morning as investors took profits and fretted once more over the outlook for Europe and the Greek debt deal.

Leading indices across the world closed up at multi-month highs overnight as investors remain in risk-on mode despite the ongoing eurozone crisis.

European stocks advanced this afternoon following the US Federal Reserve's interest rate outlook, with miners driving the FTSE 100 to build on earlier gains.

UK markets were firmer today, reaching new highs for 2012 as investors went to risk-on mode, despite the threat of a stand-off between Greece and its bondholders.

Stocks in Asia rallied overnight as reports of slowing Chinese growth increased speculation the government would act to ease lending curbs and avoid a hard landing.

The S&P 500 has risen 1.2% to 1,295, its highest level since 1 August, helping extend gains in the UK and Europe.

Fidelity's Sanjeev Shah has reduced his holding in part-nationalised lender Royal Bank of Scotland (RBS) following a tough year for financials in 2011.

Hedge funds faced a mixed year in 2011 as markets took a sharp turn for the worse, but a number of multi-billlion dollar portfolios still shone, according to the latest annual release from Bloomberg Markets Magazine.

Shares on South Korea's main index rose nearly 1% overnight, having sold off sharply on the day of North Korean leader Kim Jong Il's death.