The FTSE 100 opened down 0.5% this morning, in the first trading session since the terrorist attacks in Paris on Friday night.
SWMC Small Cap European fund manager Jamie Carter has taken his gross market exposure to a record high in the view smaller companies are being overlooked by investors in the "mad scramble" to buy European equities.
Negative sentiment towards Europe's economic prospects has caused valuations in many cases to become very attractive, says Barings' Nick Williams.
BlackRock Continental European Income
The eurozone's two largest economies both performed worse than expected in the second quarter, raising fresh fears over economic stability in the currency bloc.
Neptune's Rob Burnett has been adding to peripheral European banks in anticipation of a share price bounce after this year's round of stress tests are completed.