News that US oil inventories for last week came in higher than expected has helped the UK and American markets regain some poise after a mid-afternoon wobble.
US crude stockpiles rose by 9.4m barrels, compared with a forecast increase of around 800,000 - mainly due to a resumption of imports following delays caused by the recent tropical storm Edouard. After an early rise, the crude price slipped by around $1 a barrel.
Along with good results from computer group Hewlett-Packard, this helped make up for growing worries about US mortgage lenders Freddie Mac and Fannie Mae, which both fell sharply on talk of meetings with the US Treasury.
So after a volatile few hours trading, Wall Street had climbed by around 50 points by the time London closed. The FTSE 100 finished 51.4 points higher at 5371.8.
Rising metal prices pushed up the miners once more, with Rio Tinto rising 345p to £49.86 and Eurasian Natural Resources Corporation adding 67p to £10.27.
Despite the later dip in the oil price, Tullow Oil closed 47.5p better at 741.5p after a positive note from UBS, while recruitment group Michael Page rose 30.75p to 360.75p on hopes of a higher bid from predator Adecco.
But BT lost 12p to 165.3p after a sell note from Collins Stewart, and a negative note from JP Morgan left J. Sainsbury 12p lower at 314.75p.
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