Global markets surged on hopes of more stimulus by the European Central Bank (ECB) should the turmoil in China weigh on growth prospects.
The FTSE 100 Index rose 110.8 points to 6194.1, or 1.8 per cent, as ECB president Mario Draghi made clear that the bank stood ready to extend its money-printing programme should the eurozone's modest recovery look in jeopardy.
Germany's Dax and France's Cac 40 each rose by more than two per cent while New York's Dow Jones Industrial Average was also ahead.
The FTSE 100 endured its worst month in more than three years in August on signs of a slowdown in China, the world's second biggest economy and the turmoil spilled over into September when it fell by three per cent in Tuesday.
But a holiday in China and Hong Kong to celebrate Japan's defeat in World War Two has calmed the mood, giving traders a break from watching anxiously for latest gloomy developments.
Mr Draghi buoyed sentiment by saying the ECB could add to its €1.1 trillion (£800 billion) programme of bond purchases if needed to raise inflation or support growth.
Jasper Lawler, market analyst at CMC Markets, said: "Mario Draghi didn't let markets down. Shares opened higher in hopes of a dovish statement from the ECB president and extended gains when he obliged."
Meanwhile in the UK, latest monthly data from the dominant services sector suggested overall economic growth would slow in the third quarter.
The sector, which represents more than three-quarters of output, grew at its weakest pace for more than two years in August according to the Markit/CIPS Purchasing Managers' Index (PMI).
Sterling was down against the US dollar at just over 1.52 but rose by a cent against the euro to above 1.37 after the single currency was weakened on Mr Draghi's suggestion of more stimulus.
Among stocks in London, miners - hit hard by China's slowdown - were the biggest risers, with Glencore adding nearly seven per cent, or 8.2p, to 131p, while Anglo American climbed 41.2p to 725p.
Low cost airline easyJet was also a big riser after it upped its profit outlook following a record August with passenger numbers up 6.8 per cent to 7.1 million as holidaymakers jetted off to take advantage of the strong pound and escape last month's rain.
Shares rose five per cent or 90p to 1762p.
British Airways owner International Airlines Group was ahead too after posting a 12.4 per cent increase in passengers to 9.1 million last month. Shares rose 22p to 564.5p.
Morrisons was higher on speculation that it could be a takeover target for South African billionaire Christo Wiese - and also thanks to a broker upgrade from UBS. Shares added nearly five per cent, or 7.7p, to 170.8p.
Car dealer Lookers topped the FTSE 250 Index after adding 30 dealerships and boosting its presence in the North East by snapping up Newcastle-based Addison Motors, which trades as Benfield Motor Group, for £87.5 million.
Shares rose nine per cent, or 15.2p, to 180.5p.
The biggest risers in the FTSE 100 Index were Glencore up 8.2p to 131p, Anglo American up 41.2p to 725p, easyJet up 90p to 1762p and Morrisons up 7.7p to 170.8p.
The biggest fallers in the FTSE 100 Index were Weir Group down 15p to 1328p, RSA Insurance down 1p to 508.5p, G4S down 0.3p to 248.5p and GKN down 0.3p to 281.3p.
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