The FTSE 100 pushed higher in early deals on Thursday, recouping all the previous session's falls, albeit in thin volumes as investors awaited a key Spanish bond auction to gauge the extent of demand for peripheral euro zone debt.
At 0709 GMT, the FTSE 100 <.FTSE> index was up 37.20 points, or 0.7 percent, at 5,782.29, having shed 0.4 percent on Wednesday.
Spain will auction 2- and 10-year bonds later on Thursday, after drawing stronger-than-expected demand for shorter-dated debt on Tuesday.
Spain's 10-year government bond yield shot above 6 percent earlier this week, raising fears that it would not be able to manage its public financing and would have to turn to an international bailout, and knocking banking stocks due to concerns over their exposure to euro zone debt.
Banks <.FTNMX8350>, big fallers on Wednesday, rallied modestly in early trade, with Barclays
(Reporting by Jon Hopkins)