European markets enjoyed a rebound on Thursday with utilities firms among the stocks lifting the FTSE 100 higher.
The UK’s top index moved 40.86 points higher, or 0.51%, to close at 8,071.19, with United Utilities, Severn Trent and Centrica among the biggest risers of the day.
It marks a brief respite after hitting a three-month low during the week, with weak investor sentiment continuing to weigh on stock prices.
The more positive session comes ahead of a planned speech by Chancellor Rachel Reeves at the Mansion House in the City of London on Thursday evening, having already revealed plans to shake-up the pensions market.
Ms Reeves said reforming the pensions system would unlock around £80 billion of investment for infrastructure projects and business, helping to boost economic growth.
Other top indices in Europe enjoyed stronger gains on Thursday. In Paris, the Cac 40 jumped 1.32%, and in Frankfurt, the Dax moved 1.37% higher.
Over in the US, trading got off on the back foot as momentum stalled following a rally for Wall Street’s top index.
The S&P 500 was down about 0.2%, and the Dow Jones moved about 0.1% lower, by the time European markets closed.
The pound also gained some ground against the US dollar during the day, but was more or less flat at 2.707 at close.
Sterling was also flat against the euro at 1.2026.
In other company news, B&M moved to the top of the FTSE 100 after the budget retailer said sales growth was holding strong while household incomes remained squeeze.
The business said half-year revenues were 3.7% higher in the UK, compared with the prior year, partly thanks to new store openings.
B&M said it was in a good position to benefit from sales over the Christmas months. Its share price closed 5% higher.
Aviva shares were also given a boost after the insurer said it had seen general premiums jump by nearly a fifth as it continues to increase prices against rising claims inflation.
Chief executive Amanda Blanc said trading had been “extremely positive” across the business with customer numbers continuing to grow. Its share price was 4.6% higher at close.
The biggest risers on the FTSE 100 were B&M European, up 19p to 398.8p, Spirax, up 300p to 6,670p, Schroders, up 13.8p to 312.8p, Aviva, up 20.7p to 475.4p, and Severn Trent, up 95p to 2,679p.
The biggest fallers on the FTSE 100 were ConvaTec, down 9p to 247.4p, Experian, down 108p to 3,657p, Melrose Industries, down 13.6p to 502.6p, Rolls-Royce, down 12.4p to 545.2p, and BAE Systems, down 29.5p to 1,315p.