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The blue-chip FTSE 100 index rose 18.53 points, or 0.3 percent, to 5,552.40 points, staging a minor recovery after the index had fallen 2.1 percent on Monday to a three-week low.
However, traders said they did not think the rally would last long, due to persistent fears over the euro zone.
Late on Monday, credit rating agency Moody’s changed its outlook for Germany, the Netherlands and Luxembourg to “negative” from “stable”, citing an increased chance that Greece could leave the euro zone, while fears remain that Spain could require a full sovereign bailout.
“I don’t see the rally holding. We’re going to be jittery all summer. It looks to me as if Greece could still leave the euro zone and the Spanish situation is extremely difficult,” said JN Financial senior trader Adrian Redmond.
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