Stay away from mainland Europe - at least when investing in the asset managers - was the message being spread yesterday, as Schroders was left near the foot of the top-tier index.The group plummeted 31p to 1,446p after Deutsche Bank downgraded its rating to "sell" from "buy", suggesting that investors from the Continent have been the quickest to pull their money out of equity funds in response to the recent global market sell-off.City scribblers from the broker suggested that stocks in the asset management sector were in for a tough time in general "once the exact scale of recent outflows from retail investors is disclosed". However, they added that recent data has shown "behaviour in different geographical locations has varied markedly", leaving Schroders - which they estimated was the most exposed to retail investors from mainland Europe - as particularly vulnerable.The analysts were much more keen on Man Group and Jupiter, which moved ahead 8.7p to 229.1p and 3.7p to 20 5.8p respectively. They also cut Ashmore's rating to "hold" from "buy", although it still managed to jump up 19.1p to 420p after its promotion to the top-tier index in the latest reshuffle was confirmed on Wednesday.Despite a positive start to the session, the FTSE 100 reacted badly to the results of the latest meeting of the Bank of England's Monetary Policy Committee. Its decision to keep interest rates at 0.5 per cent surprised nobody, but there had been hopes - which were proved unfounded - that the opportunity could be used to announce further quantitative easing measures.Still, the benchmark index mounted a late recovery ahead of President Barack Obama's televised speech last night in which he was expected to unveil new proposals to tackle the country's economic situation, and by the bell it was 21.79 points stronger at 5,340.38, finishing ahead for the third consecutive day.Glencore International led the way, moving up 30.75p to 436.5p after getting a boost from the n ews that it will be able to participate in the auction of a number of new exploration blocks in Iraq, expected to take place next year. The commodities trader was also helped by the private equity group First Reserve International deciding to buy a chunk of shares after selling Glencore convertible bonds.Growing excitement over the upcoming release of the iPhone 5 lifted the chip designer Arm Holdings (whose technology is used in Apple's devices) up 25.5p to 590p, amid chatter suggesting that production of the eagerly anticipated handset is being increased to greater levels than previously expected.Royal Bank of Scotland charged forwards 0.28p to 22.74p while Lloyds Banking Group edged forwards 0.17p to 32.9p ahead of next Monday's final report from the Independent Commission on Banking.Barclays, however, slid 0.95p to 159p despite vague speculation suggesting that a surprise positive update could be around the corner, although the idea was dismissed by City voices. Both it and RBS are expected to be the worst hit by the ICB's proposed reforms.Stuck at the back of the grid was Admiral after the Office of Fair Trading revealed it was investigating the car insurance market. Shore Capital's Eamonn Flanagan said the probe "could prove quite uncomfortable for Admiral" as it dropped 33p to 1,364p, yet was more optimistic on RSA - up 2.3p to 114.5p - and Aviva - up 5.6p to 320.8p - claiming it "could offer some respite from the inexorable rise in claims costs in their respective UK motor books".Takeover talk pushed Logica up 4.7p to 87.1p on the FTSE 250, as rumours spread that the IT outsourcer may be about to attract an approach worth 150p a share. Infosys and Capgemini were being linked with the mutterings, with some saying a move for the group could make sense given its valuation.There was much less optimism on trading desks around Electrocomponents, 3p lower at 204p, with suggestions it could be in line for downgrades following a disappointing up date from its rival Premier Farnell. The electronics parts distributor retreated 13.6p to 157.9p after scaring off investors with a downbeat outlook statement released along with its second-quarter results.Back among the blue-chip stocks, Marks & Spencer closed 8.1p higher at 321.9p, even though Wednesday's revived rumours of possible private equity interest was being played down by some in the City. The high-street institution was given a boost from speculation suggesting an analysts meeting called at very notice for next Monday could see it reveal a new makeover for its stores.Down on the Alternative Investment Market, the market gossips' favourite Gulf Keystone was yet again the subject of vague takeover mutterings, as the Iraq-focused explorer jumped up 11.11 per cent, or 15p, to 150p.
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