FTSE 100 rebounds amid broader gains

The blue-chip FTSE 100 index was 0.6% higher, after logging its worst decline in more than a year on Monday

London stocks rebounded on Tuesday, tracking gains across broader markets, a day after recession concerns in the US sparked a brutal sell-off across markets, while a slew of positive corporate earnings also helped boost the recovery.

By 0710 GMT, the blue-chip FTSE 100 index was 0.6% higher, after logging its worst decline in more than a year on Monday.

The mid-cap FTSE 250 index gained 1.3%. It dropped to its lowest level in over three months in the previous session.

Weaker U.S. data in the last week stoked recession concerns in the world's largest economy, pushing investors to safe-haven assets amid a sell-off that battered markets globally.

However, Monday's data showing a bounce back from four-year lows in U.S. services sector activity in July, alongside comments from Fed policymakers that partially soothed investors and helped scale back some losses.

In London, travel and leisure shares were among the top gainers, gaining 1.9%. InterContinental Hotels Group added 2.8% after the Holiday Inn-owner reported a 3.2% increase in revenue per available room (RevPAR) in the second quarter.

Construction and materials shares added 2.4%, lifted by a 13.4% rise in Keller Group after it reported its half-yearly results. The stock topped the FTSE 250 index.

Heavy-weight banks added 1%. A check from the Bank of England showed that Britain's top eight banks could be wound down in a crisis without the immediate need for taxpayer cash.

Energy shares were up 0.9% as oil prices rebounded by more than 1%.

Most sectors bounced back after closing the session in the red on Monday.

Domestic homebuilding and construction activity figures for July are due later in the day, in an otherwise data-light week.