Equity markets

The FTSE 100 has dropped 2% as diminished expectations of more stimulus from the US Federal Reserve knock investor confidence.

Markets in Asia tumbled overnight, with China's domestic market selling off sharply, amid ongoing concerns over the recovery in the west.

Government body UK Financial Investments is in talks to sell £10bn worth of RBS shares to a consortium of investors led by Sheikh Mansour, the owner of Manchester City Football Club, according to reports.

Aberdeen Asset Management led the FTSE 100 leader board in afternoon trading after a trading update showed assets under management had soared by over 5% in two months.

BT led the FTSE 100 this morning, with shares jumping sharply after it revealed it had spent £2bn cutting its pension deficit in half.

Over the last 10 years, 1,000 new funds have been launched every year in Europe across all asset classes, a Lipper report has found.

Fears about slowing global growth forced markets sharply lower on Tuesday, with the FTSE 100 and indices across Europe tumbling.

Technology giant Apple became part of an elite group of companies with an equity value above $500bn yesterday, after shares climbed 2% on talk the group is poised to launch a new iPad.

The FTSE 100 was sharply lower by early afternoon following G20 leaders' warning additional aid will be withheld from the eurozone until its members pledge more support for stricken European countries.

Mary Chris Gay, co-manager of the £52m Legg Mason US Equity fund with Bill Miller, forecasts a rally of up to 15% in US equities by the end of 2012.