S&P 500

The FTSE 100 closed at its highest level for over two months last night as world markets soared on the first day of trading in 2012.

US markets have surged this afternoon after unexpected positive German data and a drop in Spanish borrowing costs provided some respite from the ongoing eurozone debt crisis.

Shares on South Korea's main index rose nearly 1% overnight, having sold off sharply on the day of North Korean leader Kim Jong Il's death.

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.

UK markets began the session strongly, with the blue chip index putting on more than 1% initially, ahead of key jobs data from the US.

The Dow Jones Industrial Average rose by almost 500 points overnight as US indices jumped following news of co-ordinated central bank action to ease liquidity concerns.

The FTSE 100 has moved 3% higher after the world's major central banks announced a move to boost liquidity within the financial system.

A dire German bond auction rocked markets overnight, with Japan's Nikkei index hitting its lowest level since April 2009 as fears deepened over the eurozone crisis.

3.10pm: US markets have shrugged off poor third-quarter GDP results with trading muted early in the session.