Markets surged higher across Europe after US Federal Reserve boss Janet Yellen soothed fears over imminent interest rate hikes.
London’s FTSE 100 Index surged more than 1.7% – up 104.6 points to 6210.5 – following Ms Yellen’s move on Tuesday to offer reassurance that the Fed would move cautiously when it came to further interest rate rises in America.
The Cac 40 in France and Germany’s Dax were also rallying strongly, up 1.9% and 1.7% respectively.
There had been concerns that the Fed was preparing to increase rates further after so-called hawkish comments from two US policymakers last week.
The pound was slightly higher against the US dollar at 1.44, in the wake of comments by the US Fed. Sterling was slightly lower against the euro, at 1.27.
Rising oil prices also helped fuel the market gains, with benchmark Brent crude up 1% at 39.67 US dollars a barrel.
Among stocks in London, Premier Foods was in the takeover spotlight after Schwartz spice owner McCormick & Company tabled its third approach for the business, worth £537 million.
The US spice and herbs giant has put forward a sweetened 65p-a-share proposal and urged the Premier board to open talks.
In a further twist, it emerged today that Japanese noodle giant Nissin upped its stake in Premier Foods to 19.9% at 63p per share yesterday, from a 17.3% holding it snapped up last week as part of a new co-operation agreement.
Premier shares rose almost 7% or 3.8p to 60.3p.
One of the few fallers in the top flight was budget carrier easyJet, slipping 5p to 1520p, following a broker downgrade by UBS over Brexit fears.
UBS said “investor uncertainties” surrounding the UK’s EU referendum on June 23, “will continue to make investors hesitant to build a stake in easyJet”.
However, shares in British Airways owner International Airlines Group lifted 6p to 557.5p.
Elsewhere, troubled model rail firm Hornby saw shares surge by 7% as it was given a reprieve by its lender after widening losses left it at risk of breaching the terms of its bank loans.
The group – whose brands also include Scalextric, Airfix and Corgi – said Barclays had agreed to a waiver this month and added that recent trading had been “encouraging”.
Shares, which have fallen more than 70% in the past six months, lifted 2p to 30.5p.