The FTSE 100 has shed almost 2% after US employment numbers for March came in well below expectations.
Neil Woodford, manager of Invesco Perpetual's £20bn Income fund range, has become more cautious on UK equities after a strong six-month showing from the FTSE 100.
Lord Myners, the former City Minister, has condemned lobbying of the government by the financial services industry, which has made fund managers rich at the expense of companies.
Firms are "cautiously optimistic" about the future, according to the Institute of Financial Planning (IFP), though some are still struggling to implement changes to their back office systems post-Retail Distribution Review (RDR).
The start of 2013 has brought some New Year cheer to equity investors, with the FTSE 100 recording its best January since 1989.
The FTSE 100 rose 6.43%, or almost 380 points, in January, making this the strongest start to the year since 1989.
London's leading share index soared to its highest level since May 2008 in afternoon trading yesterday, breaking through the 6,300 barrier, as the New Year rally continues to gather pace.
The FTSE 100 closed at its highest level since May 2008 yesterday as investors continued to snap up cyclical names, including the UK's semi state-owned banks.
Strong data from China and a deal to avert the US fiscal cliff have helped push the FTSE 100 past the 6,000 mark for the first time since July 2011.