Economics / Markets

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.

The FTSE 100 is nearing a two-year high once again today as investors continue to snap up cyclical names including the UK's semi state-owned banks.

Advisers remain cautious about the prospects for the UK in 2013 and over the ability of Prime Minister David Cameron and Chancellor George Osborne to lead the country's recovery, research suggests.

The retail prices index should not be brought in line with consumer prices index, AXA Investment Managers has argued, ahead of a decision by the Office for National Statistics later this week.

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.

The euro crisis is over, according to European Commission president José Manuel Barroso.

Global equity markets have eased back from last week's highs despite European financials rallying after regulators softened proposed new rules.

FIVE THINGS

Just under a third (31%) of financial advisers believe that stagnant or negative UK GDP growth will be the biggest challenge to investment growth in 2013, according to the latest Barings Investment Barometer.

International banks have given greater flexibility and a longer deadline to meet Basel III liquidity rules.