UK and European stocks staged a solid rebound on Friday (12 February) as benchmarks across the region recouped some of the previous session's losses thanks to a strong performance from mining stocks. London's FTSE 100 closed up 3.08% to 5,707.60, followed in the black by its European counterparts, as Germany's Dax and France's CAC 40 gained 2.45% and 2.52% respectively, while the Pan European Stoxx 600 jumped 2.90%.
"The week finishes in much better form than it began, with stock markets in Europe and the US clawing back losses, with even some better US retail sales figures adding to the merry mood," said IG's senior analyst Chris Beauchamp.
"European markets in particular can look forward to more positive momentum on Monday (15 February), when the US is out of action for Presidents' Day. That of course is the short-term picture, and for the FTSE 100 even a significant recovery in coming weeks, similar to that seen in January, would still leave the market in a firm downward move."
Oil prices staged a solid recovery after slumping in the previous session, with Brent crude gaining 7.71% to $32.57 (£22.53, €28.96) a barrel, while West Texas Intermediate jumped 9.68% to $29.02 a barrel.
"The gains in oil are being driven by comments from the UAE energy minister who claimed that Opec is willing to discuss production cuts with other oil exporters, which could in theory drive a more sustainable rise in prices," said Craig Erlam, senior market analyst at Oanda.
Rolls-Royce was among the biggest gainers of the day on London's blue-chip index, after the engine maker posted a smaller-than-expected decline in underlying profit and reiterated its full-year guidance for 2016, although it slashed its dividend for the first time in 25 years.
Miners led the way on the FTSE 100, with Antofagasta, Glencore and Anglo American all gaining between 9% and 16%, while Standard Chartered gained after analysts at Investec upgraded their rating on the stock from "hold" to "buy".
Commodity-related stocks were on the front foot on the FTSE 250 as well, with Tullow Oil and Vedanta Resources among the top-five gainers on London's second-tier index, while Henderson Group slid after issuing a cautious outlook statement in the previous session, which outweighed annual earnings beating consensus forecasts.
On the macroeconomic front, data released by the Office for National Statistics (ONS) earlier in the day showed British construction output fell more than expected in the fourth quarter, as reduced infrastructure spending offset an increase in housebuilding, which rose at the fastest pace since the start of 2014.
Construction output slid 0.4% in the fourth quarter after a 1.7% decline in the previous three months, the ONS said.
"We expect the intensifying fiscal consolidation and the downturn in the manufacturing sector to continue to hold the construction sector back," said Samuel Tombs, chief UK economist at Pantheon Macroeconomics.
FTSE 100 − Top 5 risers
Anglo American +17.61%
Rolls-Royce Holdings +14.34%
Standard Chartered +10.40%
FTSE 100 − Top 5 fallers
Imperial Brands -0.95%
BT Group -0.49%
TUI AG -0.10%
FTSE 250 − Top 5 risers
Tullow Oil +11.40%
Vedanta Resources +9.96%
Amec Foster Wheeler +8.66%
Weir Group +7.83%
FTSE 250 − Top 5 fallers
Henderson Group -6.07%
Poundland Group -2.75%
Just Retirement Group -2.64%
Atkins (WS) -2.36%