The blue-chip FTSE 100 <.FTSE> recovered from and early decline to finish 0.6 percent up at 5,911.46 points, although the index remains down 5 percent since the start of 2016.
Concerns about a slowdown in China, the world's No. 2 economy and a major consumer of oil and metals, have hit world stock markets this year, sending the FTSE 350 Mining Index <.FTNMX1770> down 10 percent.
However, the prospect that major producers may be edging closer to a deal to tackle one of the biggest oil supply gluts for decades [O/R] lifted the shares of energy companies such as BP (>> BP plc) and Royal Dutch Shell
Mining stocks also surged, with Anglo American (>> Anglo American plc) rising 11.8 percent on the back of higher diamond sales at its De Beers division, and firmer copper prices also lent support. [MET/L]
MB Capital director Marcus Bullus said his outlook was positive because outside the volatile commodities sector there were solid results, such as higher profits at housebuilder Crest Nicholson (>> Crest Nicholson Holdings PLC).
"I'd be looking to go with the upside momentum but maybe with a stop/loss at 5,640 points if the FTSE started to fall back down again," he said.
The FTSE remains nearly 20 percent below a record high of 7,122.74 points hit in April 2015.
(Additional reporting by Kit Rees; Editing by Louise Ireland)
By Sudip Kar-Gupta
