Lloyds Banking Group helped the FTSE 100 gain 6% over 2012 and reverse the losses of the previous year.
Asian markets received a New Year's boost as the US House of Representatives passed a last minute deal to prevent the US falling over the fiscal cliff.
London's blue chip index approached its year-high in morning trading, with banking shares among the best performers, as hopes for a resolution to the US fiscal cliff boosted sentiment.
Standard & Poor's has increased its rating of Greece's sovereign debt by six notches, after efforts by its eurozone neighbours to keep it in the currency union.
The Treasury Committee has called for additional evidence to help its inquiry into quantitative easing as it widens the scope of its investigation.
UK CPI inflation remained at 2.7% in October, broadly in line with economists' expectations, as RPI inflation fell from 3.2% to 3%.
RBS currency analysts have said selling sterling against the US dollar represents a "top 2013 trade" as the pound rises to a ten-week high.
At Investment Week's recent Global Emerging Markets Focus, we caught up with four emerging market managers to hear about opportunities and potential concerns for investors in these countries.
After an event-filled 12 months, industry experts reveal how they will be shaping their portfolios for the start of the new year