Britain's top share index posted its biggest one-day gain since early 2003 today, rebounding dramatically from 11-month lows hit around midday, as the US Federal Reserve comforted jittery markets by cutting its discount rate.
The FTSE 100 index ended up 3.5 per cent at 6,064.2 points, with banks and commodities the best performing sectors.
The Fed's move, which governs direct Fed loans to banks and is aimed at keeping credit flowing, lifted shares at home and across Europe. The US sub-prime crisis has recently spilled over into credit markets hurting stocks and pushing global central banks to inject extra cash into the banking system.