UK shares closed convincingly higher as traders were willing to embrace risk again though equities.
It came as Chinese markets bounced back, easing global fears generally and the Shanghai Composite Index closed 90 points higher after trade data that was better than expected.
Chris Beauchamp, at spreadbetter IG, said: "The global rally in stocks moved up a gear this afternoon. With the fabled St Leger’s Day approaching, and concerns about Federal Reserve tightening receding thanks to a myriad of global problems, it looks like the dip buyers are still stepping in. Once again, bad news has become good news, for stock markets at least."
Financial stocks were taking podium positions, with Standard Chartered (LON:STAN) and Aberdeen Asset Management (LON:ADN) all up. FTSE100 closed around 71 points, or 1.18% higher at 6,146.
The biggest gainer however was commodities giant Glencore (LON:GLEN), up 4.4% to 137.6p after yesterday's statement on spending cuts.
The big FTSE250 story was insurer Amlin (LONAML), whose shares flew almost 33% higher to 655p as it emerged Japan's Mitsui Sumitomo Insurance is set to buy the Lloyds of London insurer for an eye-watering £3.47bn (US$5.3bn).
Under the agreement, Amlin shareholders will receive 670 pence each for their shares, which is a 36% premium over its closing price on Monday.
The biggest laggard on the day was Premier Inn and Costa Coffee owner Whitbread (LON:WTB) reported a damp August and a potential hit from plans to boost the national minimum wage. Its shares fell 1.59% to 4,636p.
Whitbread, which also owns pub restaurants Beefeater and Brewers Fayre, said business during the month was worse than expected due to bad weather and holidays.
Trading also failed to match strong trading during the same period last year.
In small caps, a notable riser was US-focused coal miner Atlantic Coal (LON:ATC), which added 14.29% to 0.16p, while Caza Oil & Gas (LON:CAZA) gained over 21% to 2.125p.