FTSE 100

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.

Asian shares fell into bear market territory for the year overnight, while commodities and the euro suffered heavy falls on renewed eurozone fears.

London's leading share index has made a subdued opening in early trading, with investors returning cautiously to stocks after yesterday's sell-off.

ON UK INCOME

The FTSE 100 sold-off in early trading as optimism over the EU's latest deal to tackle the crisis faded and investors dumped risk assets.

ON SPECIALIST MARKETS

Markets across Europe sold off in early trading, while bond yields in core European countries rocketed towards danger levels, after investors failed to be convinced by an overnight deal to save the eurozone.

Banking and asset management giant Investec has exited the FTSE 100 as part of the latest re-shuffle of the UK's leading share index.

The FTSE 100 is down 1.2% and US markets have also opened lower as investors' hopes for a positive outcome from Friday's EU summit begin to dwindle.

European stock markets opened higher this morning ahead of a crucial eurozone meeting on Friday which could decide the future of the single currency.