The London market has closed higher despite seeing travel firms slump as a result of the Paris terror attacks.
The FTSE 100 Index was up 28.1 points to 6146.4, led by housebuilder Taylor Wimpey as it reported a record order book.
UK and European markets had been knocked by around 1% in the first hour of trading, but later recovered with Germany’s DAX flat and France’s Cac 40 down slightly.
Traders had been worried about the combined effects of the Paris attacks, China’s economic slowdown, lower oil prices and the prospect of a US rate hike next month.
But CMC Markets analyst Jasper Lawler added: “It seems likely there will be more air strikes and more attacks like those seen in Paris, which has the potential to be an ongoing source of unease for markets.”
The pound was slightly up against the euro at just under 1.42, after official data said eurozone inflation lifted higher than forecast to 0.1% in October from zero the month before.
But this is way below the European Central Bank’s (ECB) target of just below 2% for the 19-nation bloc, and the central bank is still widely expected to announce further stimulus measures at
its December policy meeting. Sterling was also slightly down against the US dollar, at just under 1.52.
Increased geopolitical risk lifted safe havens such as gold which has rebounded from near five-year lows.
This saw Randgold Resources climb 77p to 4028p and silver miner Fresnillo edge up 1p to 674p.