The FTSE 100 joined the broader market rebound a day after recession fears in the United States triggered a brutal sell-off.
The blue-chip index rose by 0.3%, recovering slightly after experiencing its worst fall in over a year on Monday, which wiped more than £40bn off its value.
The mid-cap FTSE 250 index gained 0.6% after hitting its lowest level in more than three months during the previous session.
Weaker US data last week stoked recession fears in the world’s largest economy, prompting investors to seek safe-haven assets amid a global market sell-off. However, losses began to be reversed after Monday’s data showed a rebound in US services sector activity from four-year lows in July, along with reassuring comments from Fed policymakers.
In London, InterContinental Hotels Group surged up to 4.2% after the Holiday Inn owner reported a 3.2% rise in revenue per available room (RevPAR) in the second quarter.
Keller Group climbed as much as 13.8%, leading the FTSE 250, after the engineering contractor reported its half-yearly results.
Heavy-weight banks increased by 1.7% after a check from the Bank of England indicated that Britain’s top eight lenders could be wound down in a crisis without the immediate need for taxpayer funds.
