FTSE up 1% on first day of 2012 trading

The FTSE 100 is trading 1% higher at 5,628 after closing 2011 down 5.5% for the year at the end of last week.

The UK's blue chip index rose by 1.2% in December to end 2011 at 5,572 and has continued that progress at the start of 2012 following improving economic data from China and strong gains in European markets on Monday. Data in China this morning revealed a sharp rebound in the country's official purchasing managers index for non-manufacturing sectors, which rose from 49.7 to 56 in December. Data released last week by HSBC showed a small rebound in manufacturing data from 49 to 50.3 over the same period. Hong Kong's Hang Seng rose 2.2% to 18,839-its highest level since mid-December. I...