Australia

Mining stocks slumped in afternoon trading as Rio Tinto said it has seen slowing demand from China, its best customer, while Australia implemented a controversial mining tax.

The past three years have been a tumultuous time for the financials sector, which has seen a phase of deleveraging, rights issues and balance sheet repair which continues to this day.

Barings' multi-asset team has bought £350m in Italian government bonds in the expectation European banks will use the ECB's Long Term Recovery Organisation (LTRO) to buy government debt.

ALTERNATIVES

THE BIG QUESTION

TRADE

Yields on Australian bonds have hit a record low after a wave of investors sold out of German bunds and other debt and flocked to what is seen as one of the few remaining safe havens.

Fidelity manager discusses the growing risk of another UK recession, the European debt crisis, and prospects for global government bonds.

Innes McKeand has left his post as head of equities at Aegon Asset Management to move to Australia.

First State has launched an offshore Australian Growth fund focusing on large-cap companies, headed up by Naz Ressas.