The dollar slipped overnight due to poor US inflation figures demonstrating why further quantitative easing had been decided upon by the Federal Reserve. The weaker dollar pushed the price of metals up, giving the miners a much-needed lift. Rio Tinto and Lonmin were notable risers gaining 2.5 and 1.9 per cent respectively.
The financial sector had been hit hard with the looming financial disaster in Ireland with the country and the European Union apparently at odds over the right way to tackle the issue. However, on Wednesday Ireland agreed to combine forces with a European Union International Monetary Fund panel, with the probable likely outcome a handout, despite Ireland's continued reservations over this measure.
This agreement led to widespread relief for the banks and HSBC and Barclays saw 1.5 and 1.4 added back onto their price as investors breathed a sigh of relief.
Wednesday morning saw mixed results for corporate data. Brewer SABMiller posted a strong rise of 4.8 per cent after reporting a 16 per cent increase in six monthly earnings and said that it anticipated a steady improvement in the majority of its crucial emerging markets.
After seeing its price rise recently, Capita slumped 4.7 per cent after releasing its trading update. The outsourcing group blamed a lack of new contracts would exert pressure on profits for 2011.
Air France-KLM reported solid results which revived the sector, British Airways benefitting and rising 2.3 per cent.
Further key data is due to be released on Wednesday including British October retail sales results.
