Shares on London's leading stock exchange rose on Friday as the Bank of England's 1.5% base rate cut filtered through, but US stocks tumbled and Asian markets saw mixed results.
The FTSE100 advanced more than 2% in early trading as it once again scaled 4,350, with British Airways the biggest mover despite a plunge in profits.
The Royal Bank of Scotland's share price also rose despite warnings this week it would publish annual losses for the first time in its 281-year history. Tullow Oil has climbed more than 6%.
Stock markets in Asia saw mixed trading on Friday with South Korea's Kospi index up after a cut in interest rates but Japan's Nikkei index falling.
South Korea's central bank cut rates to 4%, helping the Kospi index end almost 4% up, while Hong Kong's Hang Seng had also advanced, this time by 1.3%.
However, in Tokyo, the Nikkei closed down 3.6%, although it had been down 7% earlier, as Toyota shares plunged almost 10%.
In New York, stock prices slid for a second straight day on Thursday, producing the biggest two-day percentage drop in more than 20 years.
The Dow Jones tumbled more than 440 points, or 4.9%, to 8,695.79 as traders found themselves unable to shake off the economic gloom.
On a day of no winners, GEN Motors and Alcoa posted 13% losses, while American Express and American International Group fell about 10%.
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