Stocks in Asia rallied overnight as reports of slowing Chinese growth increased speculation the government would act to ease lending curbs and avoid a hard landing.
The S&P 500 has risen 1.2% to 1,295, its highest level since 1 August, helping extend gains in the UK and Europe.
Fidelity's Sanjeev Shah has reduced his holding in part-nationalised lender Royal Bank of Scotland (RBS) following a tough year for financials in 2011.
Hedge funds faced a mixed year in 2011 as markets took a sharp turn for the worse, but a number of multi-billlion dollar portfolios still shone, according to the latest annual release from Bloomberg Markets Magazine.
Shares on South Korea's main index rose nearly 1% overnight, having sold off sharply on the day of North Korean leader Kim Jong Il's death.
Markets around the world closed down overnight as further signs European leaders will fail to agree a new treaty emerged.
If Greece leaves the euro, banks across the Continent will suffer "horrifying" consequences, with a run on banks worse than anything seen before, said M&G's bond star Jim Leaviss.
The FTSE 100 sold-off in early trading as optimism over the EU's latest deal to tackle the crisis faded and investors dumped risk assets.
After a momentous year for government debt, during which it far outstripped the majority of asset classes, managers have moved to take profits from positions in several major debt markets.
Actions taken by the European Central Bank this week, combined with the EU's efforts to sign a new treaty, have made it too risky to be underweight bank bonds in Europe, Kames Capital's fixed income team has said.