The sharp rally in credit markets following the sell-off caused by the Federal Reserve's tapering talks was a surprise and a cause for concern for Iain Buckle, fixed income fund manager at Kames Capital.

The eurozone has come out of recession, recording GDP growth of 0.3% in the second quarter to bring a record 18-month contraction to an end.

Developed equities attracted the bulk of inflows into exchange traded funds (ETF) in the second quarter, according to the latest figures from iShares, as investors continue to shy away from emerging markets.

Aviva Investors has hired Sunita Kara from Baring Asset Management as portfolio manager for European high yield.

Japan's Nikkei has soared while the yen has tumbled against the dollar, amid speculation the government is considering a corporate tax cut.

Albemarle Street Partners has highlighted seven funds in the IMA Targeted Absolute Return sector which could outperform, according to its recently launched screening tool ‘Alpha Quest'.

Canada Life Investments is planning to launch an onshore version of the Putnam Global High Yield Bond fund managed by its sister company Putnam Investments.

UBS Global Asset Management is closing its European Equity fund in September due to poor performance and dwindling assets.

Shares in asset managers Schroders and Henderson have fallen in morning trading while Aviva climbed following a set of half-year results from the groups.

The FTSE 100 closed 1.4% down on Wednesday after new Bank of England Governor Mark Carney gave the market forward guidance, but sterling recovered after an initial drop.