LONDON (MarketWatch) -- Shares in London rebounded from near five-year lows on Wednesday, after central banks around the world cut interest rates.
The U.K. FTSE 100 index ) traded down 0.9% to 4,562.12, well off a low of 4,245.29 hit earlier in the session.
The Federal Reserve, the Bank of England, the European Central Bank and other major central banks cut interest rates Wednesday in a coordinated move to head off a major global slump. See related story.
The Federal Reserve cut its key lending rate a half-point to 1.5%, while the ECB cut its key rate a half point to 3.75%. The Bank of England also cut its key rate by a half point to 4.5%
Advancers included retailer Marks & Spencer up 8.1% and miner Xstrata , up 7.5%.
Banks were mixed. The U.K. government announced Wednesday that it would make new capital available to banks and building societies, providing short-term liquidity and ensuring banks have the funds necessary to maintain lending in the medium term. See full story.
Royal Bank of Scotland rose 25.6%, while HBOS , jumped 57.5%. However, Standard Chartered lost 6.9%.
