The FTSE 100 index closed 1.4 per cent higher at the end of the day’s trading, reaching 5,862, after a strong performance from the financials sector.
Lloyds Banking Group was the strongest riser, up 8.3 per cent to 43.9p, despite announcing a pre-tax loss of £583m. The loss was impacted by a further £1bn provision for payment protection insurance.
The bank was joined in the top five by financial peers Barclays, up 5.2 per cent to 239.25p, and Legal & General, which increased by 4.5 per cent.
Broadcaster British Sky Broadcasting climbed 7.1 per cent higher to 759p, while BT rose 6.8 percent to 227p.
The biggest faller was natural gas company BG Group, down 4 per cent to 1,102p. Tech company Croda International slipped 1.3 per cent lower to 2,172p, while medical devices company Smith & Nephew dropped 1 per cent to 648.5p. Utilities company Severn Trent and services company Serco both dropped 0.6 per cent to 1,596p and 563p, respectively, completing the bottom five.
Further abroad, the S&P 500 was 0.95 per cent higher (at 1713 GMT), the German DAX closed 1 per cent higher at 75.04, while the French CAC 40 finished up 1.4 per cent higher at 46.13.