The UK stock market displayed a burst of optimism ahead of yesterday's key interest rate decision from the US Federal Reserve.
After a three-digit loss on Tuesday, sparked by concern at the latest round of profit warnings, the FTSE 100 index regained around half the ground lost during the previous session, rising 52.2 points to 5,607.9.
The blue-chips were the main beneficiaries of the buying pressure. The FTSE 250 index edged ahead just 7 to 6,274.8, while the Techmark 100 recovered from Tuesday's all-time closing low, rising 19.1 to 1,754.7. The SmallCap actually lost ground, falling 12.2 to 2,941.0.
With no domestic economic data being released, and with the Fed decision due almost three hours after the London close, the main driving force behind the market was corporate news.
Internationally, Bayer, the German chemicals group, was the latest corporate giant to issue a profit warning, although the news had been widely expected after BASF's warning last week. European markets were generally lower on the day but Wall Street, normally the main influence on London, was more positive, with the Dow Jones Industrial Average up around 50 points by the London close.
Lattice was the best-performing stock in the FTSE 100 after details of the gas regulator's proposed pricing regime proved more favourable than expected. And there were positive trading updates from Xansa, the technology company formerly known as FI Group, and from Persimmon, the housebuilder.
Leading technology stocks, often the most volatile shares in the market, had one of their better days with Sage and ARM two of the best three performers in the FTSE 100 and Psion leading the way in the FTSE 250.
