The FTSE 100 clawed back yesterday’s losses to soar 4.34 per cent to 3,926.14, led by a mix of financial and mining stocks.

Old Mutual led the rise, up 13.10 per cent to 51.8p, followed by a 12.19 per cent jump in Marks & Spencer, which beat market forecasts this morning with a set of fourth quarter results.

Mining firm Kazakhmys was also up, by 11.58 per cent, while investment firm Man Group rose 10.12 per cent.

David Jones, chief market strategist for IG Index, said: “It has been a sharp turnaround of Monday’s fortunes, with yesterday’s losses regained and the FTSE 100 once again probing the 3900 mark.

“There could still be enough strength left in the FTSE for a test of the 4,000 mark but it remains difficult to see at the moment what is going to provide a catalyst for any significant and prolonged moves in either direction.”

Only a handful of stocks were in the red, topped by Barclays, which rejected the government’s asset protection scheme earlier today.

The bank slipped 0.74 per cent, followed by Intertek Group, down by 0.67 per cent and a 0.38 per cent fall at Randgold Resources.

On Wall Street, markets opened higher, despite further gloomy economic data.

The Dow Jones was up 1.4 per cent in early trading, while the S&P 500 rose 1.3 per cent.