London - Britain's top equity index rebounded on Thursday from losses earlier in the week as concerns over China's economy eased.
Shares in travel group TUI surged on a bullish outlook.
The FTSE 100 index, which had fallen by more than 2 percent in the previous two sessions, rose 0.6 percent to 6,612.81 points.
Beijing's devaluation of the yuan on Tuesday had hit world financial markets, but China's central bank said on Thursday that strong economic fundamentals meant there was no reason for the currency to weaken further. Stock markets in Asia and Europe rose.
“They're taking the Chinese central bank at its word, but I'm still taking those comments with a pinch of salt,” said Richard Perry, an analyst at Hantec Markets. “Selling short-term rallies on the FTSE would still seem to be a sensible strategy to play.”
TUI was the best-performing FTSE 100 stock in percentage terms, climbing 7.4 percent after the company forecast earnings at the top end of analysts' expectations.
Shares in G4S - the British company whose services include running prisons and protecting airports - fell 2.6 percent after both Goldman Sachs and Exane BNP Paribas cut their ratings on the stock.
The FTSE rose to a record 7,122.74 points in late April but has since given up most of the gains it made in 2015.
REUTERS