FTSE starts 2012 on the front foot

Investors started 2012 with a burst of optimism today as upbeat manufacturing data from all corners of the world triggered a rally on London’s top shares index.

The FTSE 100 Index closed at its highest level in two months as it surged more than 2% or 127.8 points to 5699.9 after strong manufacturing data from the US, China, India and Australia, as well as better-than-expected UK factory figures, pleased traders.