Markets edged into positive territory to break a three-day losing streak, as investors made a cautious return after a turbulent spell of economic data.

The FTSE-100 index made modest headway to close up 27.16 points at 6276.94, a gain of 0.4%.

Sentiment was rocked at the end of last week by disappointing non-farm payroll figures, which showed US employers added 88,000 jobs in March, far short of the 170,000 to 200,000 expected by economists.

European markets slumped on the back of the data, with the Footsie slipping to a two-month low on Friday. However, despite a downbeat start by the Dow Jones industrial average, European stock markets traded narrowly higher, with the Dax in Frankfurt and the Cac 40 both ending the day in positive territory.

Mike Ingram, market analyst at BGC Partners, said the weak gains suggest the stock market's bull run is on shaky ground. The Footsie enjoyed its 10th consecutive month of gains in March, but has struggled to make headway this month.

He said: "The risk rally that has propelled markets since mid-2012 is now looking decidedly frothy; recent economic data has mostly disappointed and company earnings present a very mixed bag. Central banks' determination to 'do whatever it takes' to underwrite economic recovery looks set to be further tested in the weeks ahead. It may not be enough."

In a quiet session for UK corporate news, airline and travel firms made headway as nervousness over a recent outbreak of deadly bird flu in China began to fade.

Stocks fell sharply on Friday after authorities ordered the slaughter of all poultry at a Shanghai market where the virus was detected.

However, there was a recovery for Thomson Holidays owner TUI Travel, ahead 3.8p at 302.4p.

Banks were among the stocks under pressure, with Lloyds Banking Group, down 0.71p at 46.31p, Royal Bank of Scotland, off 3.4p at 266.1p, and Barclays, 2.8p down at 277.2p.

Marks & Spencer also fell as the City braced itself for another set of poor trading figures in general merchandise on Thursday.

Analysts fear the decline could be as high as 6% and the shares gave up 1.5p to 375.3p.

The biggest Footsie risers were Polymetal International, up 44p to 882p, Weir Group, 92p ahead at £22.76, and Tullow Oil, up 37p at 1191p.

The biggest fallers, apart from Lloyds Banking Group and RBS, were Resolution, 4.5p lower at 261.4p, and Centrica, down 4.3p at 369.8p.