London's top stocks have given up some of yesterday's triple-digit gains in early trading, with the FTSE 100 down 0.72%.
The UK's four major banks have passed EU stress tests, although five Spanish banks failed, the Committee of European Banking Supervisors (CEBS) said.
HSBC has launched its GIF European Alpha Equity fund with its largest short exposure to the materials sector, including miners, which the manager thinks are overvalued.
The euro rocketed to a two-month high of $1.29 and sterling jumped two cents to almost $1.54 against the dollar after the Fed confessed the US economy may not recover for five or six years.
HSBC has launched an ETF tracking the Brazilian stock market.
The manager of the £1.6bn HSBC GIF Brazil Equity fund plans to introduce property into the portfolio when the outlook for inflation improves.