The blue-chip FTSE 100 added 0.1%, with traders buying into energy, financial and consumer discretionary stocks on hopes of a broader economic rebound after data on Monday from around the world pointed at a sharp jump in factory activity. The mid-cap FTSE 250 rose 0.4%, led by a 5.6% jump for easyJet Plc as it said it planned to fly about 40% of its capacity over the rest of the summer, more than originally scheduled.
Lender HSBC slid 2.9% to its lowest since 2009 as the coronavirus crisis saw it flag mounting bad debt charges and miss profit expectations, sending the FTSE 100 to its lowest since mid-May, before sentiment turned. Data showed British manufacturing output last month grew at its fastest pace in nearly three years, while Germany reported an expansion for the first time since 2018. Earlier in the day, China - one of UK's major trading partners, also reported growth in factory output.
The oil giant warns the coronavirus pandemic could weigh on demand for a "sustained period".