The London market bounced back, with the FTSE 100 posting the second biggest gain in its 24-year history as investors drew comfort from a series of government and central bank moves to tackle the financial crisis. These included a £37bn cash injection for three UK banks.

The blue-chip index advanced 324.8 points, or 8.3 per cent, to 4,256.9, the first time in five sessions that it had ended higher. It was the FTSE 100’s largest one-day percentage gain since September 19, the day the short-selling ban on financials was introduced. The index is, however, still down 34 per cent this year.