Blue-chip shares have recovered their poise after a bout of profit taking led to big losses at the end of the first quarter of 2015.

The top-flight rose by more than 70 points at one stage but a weak start to trading on Wall Street meant the FTSE 100 closed 36.5 points higher at 6809.5 - partially offsetting a fall of more than 100 points the day before.

Sentiment was buoyed by UK manufacturing data showing the sector grew at its fastest pace for eight months in March.

A reading of 54.4 on the closely-watched Markit/CIPS purchasing managers' index - where 50 separates growth from contraction - was up from 54 in February.

It added to cheer after official data earlier in the week showed UK growth for 2014 revised up from 2.6 per cent to 2.8 per cent.

But separate figures from the Office for National Statistics today showed productivity fell by 0.2 per cent in the final quarter of last year, adding to concerns about the sustainability of the recovery.

The pound fell against the euro to just below 1.38 while it was steady against the US dollar at just above 1.48.

Elsewhere, German's Dax and France's Cac 40 were both up as the eurozone posted strong monthly manufacturing figures, with growth at a ten-month high.

Figures from China's factories were more lacklustre but it was not enough to hold back London's top flight. It was on the front foot again after recent days in which it has been buffeted by Chinese growth fears, in spite of encouraging updates from Europe.

UK-focused banking stocks were among the big risers today with an upgrade for state-backed Lloyds from broker Jefferies helping it add more than one per cent, or 1.1p, to 79.4p.

Barclays was near the top of the leader board with an improvement of almost three per cent, or 6.7p, to 249.3p.

Bailed-out Royal Bank of Scotland, 80 per cent owned by the taxpayer, lifted 5.4p to 345.4p and HSBC added 4.6p to 578.6p, but Asia-focused Standard Chartered fell 11.5p to 1082p after unveiling more senior management changes.

In the FTSE 250 Index, FirstGroup rose nearly seven per cent - up 6.2p to 97.2p - after it said trading for the final quarter of its financial year had been in line with expectations following growth in UK rail and bus operations.

Meanwhile, shares in online retailer ASOS climbed five per cent or 99p to 3728p despite the company reporting a 10 per cent drop in half-year profits.

The company blamed the decline on the cost of a two-year IT investment plan and said it was on track to meet forecasts for the full year.

The biggest FTSE 100 risers were Imperial Tobacco up 82p at 3045p, Barclays ahead 6.7p at 249.3p, BG Group up 22.4p at 851.4p and Fresnillo ahead 17.5p at 700p.

The biggest fallers were Kingfisher down 12.6p at 368p, Shire off 105p at 5260p, Barratt Developments down 7.5p at 521p and WPP off 18p at 1513p.