A dismal four-day losing streak for the FTSE 100 Index was brought to an end as the top-flight was bolstered by a rise in mining stocks.

The sector was lifted after better-than-expected trade figures in China improved the outlook for a number of commodity-based groups.

Anglo American topped the blue-chip risers' board with a gain of nearly five per cent as the FTSE 100 pulled out of the slump with a gain of 26.3 points to 6366.2.

Fears that the eurozone economy is about to plunge back into recession had caused London's leading share index to lose three per cent of its value last week, while the damage was even greater in Germany after big losses for Frankfurt's Dax index.

European shares were lower at the start of the latest session before climbing into positive territory, though New York's Dow Jones Industrial Average was in the red at the time of the close in London.

On currency markets, the pound's weakness continued with the difficulties in the eurozone appearing to have lessened the chances of the Bank of England policy makers hiking interest rates this year.

Sterling edged slightly lower a at just below 1.61 US dollars and fell back against the single currency at just under 1.27 euros.

In mining stocks, Anglo American rose 62.5p to 1388p while Randgold Resources lifted 184p to 4381p and Rio Tinto climbed 125p to 3090p.

However Weir Group shares slid 51p, or 2.3 per cent to 2155p on the back of a downbeat research note from Investec, as a result of falling oil and gas prices.

The biggest gain in the FTSE 250 Index came from Synergy Health after the UK-based firm agreed a takeover offer worth £1.2 billion from US-based rival Steris.

Shares in Synergy, which was founded in 1991 through the introduction of surgical packs to reduce the rate of HIV infection in operating theatres, were 31 per cent higher, a rise of 440p to 1840p.

Apple chip designer Arm Holdings, based in Cambridge, was down two per cent or 20.5p to 822p after big losses for the tech-laden Nasdaq index on Wall Street on Friday.

Supermarket giant Tesco was back under pressure, with a decline of nearly three per cent or 4.6p to 180.6p. Brokers at Cantor Fitzgerald highlighted the potential disruption to Christmas trading caused by the inquiry into Tesco's profits over-statement.

Shares in chocolate maker Thorntons were at a 12-month low after sales in commercial channels fell 12.8 per cent to £20.8 million in the 14 weeks to October, shares slid 4p to 95p.

The biggest risers on the FTSE 100 were Anglo American up 62.5p to 1388p, Randgold Resources up 184p to 4381p, Rio Tinto up 125p to 3090p and Fresnillo up 29.5p to 778.5p. Biggest fallers were Tesco down 4.6p to 180.6p, TUI Travel down 8.4p to 335.4p, and ARM Holdings down 20.5p to 822p.