UK market rebounds as Portugal makes headway on crisis talks

The FTSE 100 bounced back this afternoon after a sell-off yesterday, with leading shares recovering from falls amid fresh hopes for a resolution to the crisis in Portugal.

The UK's leading index was up over 1% at 6,302 prior to the BoE rate decision, with investors returning to markets after yesterday's European wide sell-off. A growing optimism is prevalent in Portugal as it becomes apparent the country can avoid new elections, with reports of talks between the coalition partners. This helped lift other indices, with French and German shares firmer by around 0.7% and 0.8%, and Portgual's index making up some of its huge losses, with shares up 2.2% following yesterday's 6% fall. The FTSE then climbed further after the Bank of England (BoE) - which le...