How the FTSE fared in a year of two halves

London's leading index has been impacted by both ‘black swan' events and heightened volatility over the past 12 months.

If the first quarter of the year was characterised by unforeseeable ‘black swan' events such as the Arab Spring and the earthquake in Japan, the rest of 2011 was dominated by one big known unknown: the sovereign debt crisis in the eurozone. Although it had fallen 7% over the year to 13 December, it could be argued the UK's blue chip index held up well against a series of setbacks in 2011. As of 13 December, some 37 of the 100 companies had produced positive returns in 2011, with the index up 6.6% for the fourth quarter despite policymakers failing to resolve the eurozone crisis. Bu...