After five days of losses, there was finally some relief for UK markets today as the FTSE 100 managed to hold onto its daily gains, closing up 1.5% - over 85 points - at 5853.5.
For a change, good news from the US economy helped buoy markets on both sides of the Atlantic. The US services sector posted stronger than expected growth, helping to calm fears of over a recession in the world's largest economy.
Early in the day, it emerged that the insurers that would lead the gains on the UK stock market, and Prudential emerged as one of the top winners.
The stock jumped 6.8% to 632.44p after shareholders in China's Ping An Insurance approved a plan to raise about $17bn, prompting fresh speculation it could take a stake in the European insurer.
The boost to the Pru's shares helped pull up Aviva, Old Mutual and Legal & General, but the rally was greeted cautiously by analysts.
"While today's rally is a welcome bit of relief after the steady decline we have seen from the 6,100 level on the FTSE, many are worried that it could turn out to be nothing but a dead cat bounce," Tim Hughes, at IG Index, said.
