Britain's leading shares bounced back today from last week's six per cent tumble, boosted by Friday's late turnaround on Wall Street and hopes of a follow-through as investors bought heavyweight oils, drugs and telecoms.
By 11.21 a.m. the FTSE 100 benchmark index was up 60.3 points, or 1.3 per cent, at 4,690.9. The rise clawed back some of Friday's fall of 141 points - or three per cent - which left it at 4,630.8, its worst closing level for nine months.
Oil stocks contributed 17 points to the FTSE's gains. BP adding 2.2 percent and Shell climbing three per cent as crude prices rose after Iraq's oil minister warned that the UN sponsored oil-for-food programme could stall.
Telecoms and pharmaceuticals sectors both added nine points to the FTSE, while banks added seven, recovering from last week's broad sell-off.
Prudential led the under-fire insurance sector higher with a four per cent rise, helped by an upgrade from Morgan Stanley.
But dealers said market confidence remained brittle after last week's collapse.
"Friday was a horrible day, and people are still a bit shell-shocked. It's had a fair bounce this morning, but no-one looks that brave," one dealer said.
Markets were hit last week by weak US retail sales and consumer confidence data, which shook confidence the United States will spearhead global economic recovery.