The FTSE 100 has ended 2011 down after a turbulent year that has seen around £90bn wiped off the value of the index, but despite the fall shares in London have fared much better than those in Frankfurt and Paris.
The index of leading shares rose 5.5 points - or 0.1pc - on Friday to close at 5572.28 in thin trading - a fall of 327.66 points, or 5.55pc, over the year.
This is its seventh worst annual performance since 1984 and its worst since a 31pc fall in 2008 when the Lehman collapse brought the global financial system to the brink of collapse. The index rose 22pc in 2009 and 9pc last year.
Large market falls in 2011 were driven by a series of dramatic events, including Japan's devastating earthquake; prolonged political stalemate in the US over attempts to raise the nation's debt ceiling; and the ongoing eurozone sovereign debt crisis.
The FTSE clawed back some gains at the end of the year after hitting a year-low of 4944.4 in October when the escalating eurozone debt crisis triggered a global stock market sell-off, but economic uncertainty continues.
Banking shares were the biggest losers of 2011, closing down more than 4pc on the FTSE 100, while the oil and gas sector made the biggest gains, rising almost 2pc.
However, the FTSE 100 has outperformed rival eurozone indices this year, with Germany's DAX dropping 15pc, France's CAC 40 losing 17.6pc, Italy's MIB slumping 26pc, Spain's Ibex shedding 13.7pc and Greece's ASE 20 tumbling 61pc.
"Market movements have been dominated by the ongoing European sovereign debt crisis during a year that has probably seen more summits than anyone can care to remember," said Angus Campbell, head of sales at Capital Spreads. "With so much continued uncertainty investors will probably be spending most of 2012 walking a tightrope."
Asian markets also suffered in 2011 as the eurozone crisis damaged global growth, hitting the export-led economies of Japan, China and South Korea.
Japan's Nikkei-225 index ended the year at its lowest year-end level since 1982, despite rising on the day due to upbeat US data on Thursday. The index closed up 0.7pc at 8,455.35 to end 2011 down 17.34pc. In 1982, it finished the year at 8,016.67.
Hong Kong's Hang Seng index has dropped 20pc this year, China's Shanghai Composite is down 22pc, South Korea's Kospi has shed 11pc and Australia's S&P/ASX 200 has lost 14.5pc.
India's stock market recorded its first annual fall in three years, with the Sensex index closing down 24.6pc in 2011.
Of the major global stock markets, only America's Dow Jones ended the year up, gaining 5.53pc. The broader S&P 500, which reflects the nation's domestic economy, finished the year almost exactly where it started, losing only 0.04 points.
The technology-rich Nasdaq Composite ended 2011 down 1.8pc.
In London, benchmark 10-year gilt yields finished the year at a record low of 1.97pc, where the lower the yield, the greater the demand for UK Government debt. It was 47pc lower compared with its 2010 close.
The pound ended 2011 down 1.2pc against the dollar at $1.5461, but was up 2.4pc against the euro at €1.1950.
Gold gained for an 11th consecutive year, closing up 10.7pc on the year at $1,569 an ounce. Brent crude oil ended the year up 15.2pc at $106.74 a barrel, while copper closed down for the first time in three years, falling 22.4pc to $7,553 a tonne.
Nationwide reported that house prices rose by 1pc in 2011, following a 0.2pc fall in December. The average price of a home in Britain is now £163,822.
"Market movements have been dominated by the ongoing European sovereign debt crisis during a year that has probably seen more summits than anyone can care to remember," said Angus Campbell, head of sales at Capital Spreads. "With so much continued uncertainty investors will probably be spending most of 2012 walking a tightrope."
Asian markets also suffered in 2011 as the eurozone crisis damaged global growth, hitting the export-led economies of Japan, China and South Korea.
Japan's Nikkei-225 index ended the year at its lowest year-end level since 1982, despite rising on the day due to upbeat US data on Thursday. The index closed up 0.7pc at 8,455.35 to end 2011 down 17.34pc. In 1982, it finished the year at 8,016.67.
Hong Kong's Hang Seng index has dropped 20pc this year, China's Shanghai Composite is down 22pc, South Korea's Kospi has shed 11pc and Australia's S&P/ASX 200 has lost 14.5pc.
India's stock market recorded its first annual fall in three years, with the Sensex index closing down 24.6pc in 2011.
Of the major global stock markets, only America's Dow Jones ended the year up, gaining 5.53pc. The broader S&P 500, which reflects the nation's domestic economy, finished the year almost exactly where it started, losing only 0.04 points.
The technology-rich Nasdaq Composite ended 2011 down 1.8pc.
In London, benchmark 10-year gilt yields finished the year at a record low of 1.97pc, where the lower the yield, the greater the demand for UK Government debt. It was 47pc lower compared with its 2010 close.
The pound ended 2011 down 1.2pc against the dollar at $1.5461, but was up 2.4pc against the euro at €1.1950.
Gold gained for an 11th consecutive year, closing up 10.7pc on the year at $1,569 an ounce. Brent crude oil ended the year up 15.2pc at $106.74 a barrel, while copper closed down for the first time in three years, falling 22.4pc to $7,553 a tonne.
Nationwide reported that house prices rose by 1pc in 2011, following a 0.2pc fall in December. The average price of a home in Britain is now £163,822.
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