The man arrested in the stab murder of a wealthy City director in his Chelsea home has been released.

Police granted bail to the suspect, in his 30s, who was detained on Tuesday, less than a day after the attack on bonds dealer John Monckton and his wife, Homeya.

The Legal and General director, 49, was stabbed to death when two youths forced their way into the front door of the family's three-story town house in Upper Cheyne Row. Mrs Monckton, who was severely wounded, is in a stable condition in hospital.

Their nine-year-old daughter was upstairs when her parents were overwhelmed. It is thought her emergency phone call saved her mother's life.

The suspect has to return to a west London police station in January, pending further investigations.