The FTSE 100 climbed 0.8% or 44 points to 5,584 this morning following yesterday's slide on the back of disappointing retail sales figures.
Technology and basic materials were the strongest performing sectors, up 1.21% and 1.08% respectively.
At the stock level, the Carphone Warehouse Group led the winners, rising 3.85%, while Invensys was up 3.68%. Thermoplastics company Victrex and Essar Energy also climbed in early trading.
The heaviest faller was biopharmaceutical company Shire, down 0.79%, with drinks supplier Britvic falling 0.66%. Cable and Wireless, Carillion, and Melrose also saw their shares slide.
In Europe the German Dax rose 0.84% or 53 points to 6,302, while the French Cac 40 gained 1.03% or 38 points to 3,774.
The major indices in the US closed slightly higher yesterday, buoyed by positive newsflow from electronics retailers, with the Dow Jones up 0.21% and the Nasdaq up 0.08%.
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created