Standard Life Investments' Jonathan Gibbs has closed short positions in Italian and Spanish government debt following intervention from the European authorities.
US hedge fund giants looked to technology stocks in the second quarter but some big names have been left nursing heavy losses after moving back into US financials ahead of the market crash.
European investors who pumped billions into high-yield bonds in first half of 2011 could see asset class faced with rising default rates.
French regulators have failed in an attempt to extend the short-selling ban to major European stock markets, allowing investors to bet on further falls in financial stocks, the FT reports.
France's AAA credit rating is "stable" said ratings agency Standard & Poor's, a week after rumours hit the market the country is facing a downgrade.
Henderson is to close the offshore version of Charlie Awdry's China Opportunities fund following a redemption from a significant shareholder.
Warren Buffett has revealed he has exploited recent sell-offs to buy up cheap stocks.