GLOBAL markets were back on the front foot after upbeat economic data from China and Europe lifted sentiment after days of losses on worries over an end to US stimulus measures.

Figures showed increased factory output in China, the world’s second biggest economy, while survey data pointed to an expansion in eurozone manufacturing and services sectors in August.

The economic cheer drove the FTSE 100 Index 56 points higher to 6446.9.

Markets were encouraged after Bank of England policymaker Martin Weale said the Bank may need to top up its £375bn quantitative easing programme, while minutes of a US Federal Reserve meeting showed uncertainty on whether it would begin tapering of its stimulus measures in September or December.

European markets advanced strongly on data from the single currency data, with Germany’s Dax and France’s Cac 40 both up by more than one per cent.

A monthly composite purchasing managers’ index for the 17-country single currency region, which includes both manufacturing and services, hit its highest level since June 2011 as the eurozone’s recovery gathers pace.

Meanwhile better-thanexpected Chinese data raised hopes the country’s growth slowdown may be easing, with a manufacturing survey showing the sector swinging to growth from contraction a month earlier.

Strong car production figures in the UK likewise boosted sentiment, rising seven per cent year-onyear in July to 128,873.

The biggest risers on the FTSE 100 were IMI, up 82p to 1491p, Fresnillo up 51p to 1215p, Wolseley climbing 136p to 3330p and RSA Insurance up 3.6p to 123.6p.

The biggest fallers were Experian, off 14p to 1169p, Eurasian Natural Resources down 1.9p to 225.2p, Burberry off 12p at 1574p and Hargreaves Lansdown down 5p to 991.5p.