The Footsie closed 37.8 points higher at 5,819.9 today amid hopes that US policymakers will unveil a new round of emergency support.
High street chain Next suffered a battering on the London market however, after it highlighted disappointing trading in August and September.
The retailer closed 7% lower on the alert, while BAE Systems also lost 7% as initial excitement over yesterday’s news of merger talks with Airbus owner EADS turned to fears over the potential hurdles.
Next’s ominous trading warning put the group firmly in the spotlight and sent shares down 259p to £33.20.
Shares in BAE Systems were also at the bottom of the FTSE 100 Index after the group confirmed talks over a potential merger with Airbus aircraft manufacturer EADS to create the world’s biggest aerospace and defence company.
The statement triggered a 11% surge in the share price yesterday, but the stock slipped 26.5p to 337.1p today.
Outside the top flight, Argos owner Home Retail Group fell nearly 5% despite a robust 1.4% rise in like-for-like sales at the catalogue chain. However, Homebase, its home improvement and garden centre chain, reported a near 4% slide in same-store sales. Shares were down 4.6p at 94.9p.
The biggest Footsie risers were Rolls-Royce up 25.5p to 854p, Vodafone ahead 3.4p to 177.4p, BG Group up 23.5p to £12.63 and Resolution up 4.1p to 221.4p.
Among the biggest Footsie fallers were Evraz off 9.6p to 259.4p and Vedanta Resources down 24p to 961.5p.
Elaine McLachlan, of investment manager and financial planning specialist Brewin Dolphin in Inverness, noted that risers included Goals Soccer Centres, up 3.4% at 122.5, and Devro, rising 2.7% to 325.7p.
Fallers included J. Smart & Co, off 6.5% at 71.5p, EnQuest down 2.4% at 120.6p and Premier Oil falling 2.2% to 371.6p.