The FTSE 100 Index ended a volatile week on a positive note helped by a bounce-back in the oil price, though the last session of August rounded off the top-flight's worst month for more than three years.
It finished 55.9 points higher on the day at 6247.9, meaning after all the sharp ups and downs of recent sessions the index was about 60 points ahead for the week.
But the closing level ahead of the Bank Holiday weekend was more than 400 points lower than at the end of July, a 6.7 per cent fall that is the worst for a calendar month since May 2012.
Global markets have been shaken by fears of a slowdown in the Chinese economy - worries that dragged the FTSE 100 lower for ten sessions in a row culminating in a 4.7 per cent drop on Monday.
But sentiment has improved amid an interest rate cut in China and upgraded second quarter growth in the US.
China's Shanghai Composite Index rose again overnight and the price of a barrel of Brent crude has now picked up.
After tumbling to a near six and a half year low of less than 43 US dollars earlier this week, it climbed close to 50 US dollars in the latest session.
This helped Royal Dutch Shell rise 47p, to 1706.5p while exploration firm BG, with which it is to merge, added 32.8p to reach 994.6p. BP added 9.3p to 360.5p.
But the oil price rise weighed on travel firm TUI, which fell three per cent, or 33p, to 1156p, with easyJet down 22p to 1683p and British Airways owner International Airlines Group off 7p to 539p.
While the FTSE 100 rose, there was a mixed picture in Europe with Germany's Dax a little lower and France's Cac 40 ahead.
In New York, the Dow Jones Industrial Average slipped into the red as figures showed a dip in US consumer confidence and comments from Federal Reserve vice chairman Stanley Fischer reawakened fears of a September interest rate hike.
Meanwhile official figures in the UK confirmed that growth accelerated to 0.7 per cent in the second quarter
Net trade made the biggest contribution, of one percentage point, as exports rose 3.9 per cent and import growth slowed, according to the Office for National Statistics (ONS).
The pound was lower against the US dollar at just under 1.54 while it added a cent against the euro to a little below 1.38.
In the FTSE 250 Index, paving firm Marshalls rose nearly six per cent after reporting a 48 per cent rise in half-year pre-tax profits to £20.8 million.
The West Yorkshire-based firm said that if positive market conditions continued through the second half, full-year trading was likely to be above original expectations. Shares rose 18.5p to 335p.
The biggest risers in the FTSE 100 Index were Inmarsat, up 45.5p to 981p, BG up 32.8p to 994.6p, Royal Dutch Shell up 47p to 1706.5p and BHP Billiton up 29.5p to 1132p.
The biggest fallers in the FTSE 100 Index were TUI, down 33p to 1156p, St James's Place down 16.5p to 915.5p, easyJet down 22p to 1683p and International Airlines Group down 7p to 539p.
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