London shares recovered on Wednesday as bargain hunters moved in after the previous session's plunge amid renewed fears about the eurozone economy, traders said.
The benchmark FTSE-100 index was up 15.46 points or 0.28 percent at 5,611.01 points at 8:25 am.
The index had dropped more than 2 percent on Tuesday as Europe's debt woes returned when Spanish benchmark 10-year bond yields spiked to 5.94 percent -- their highest levels since December -- after the government unveiled further swingeing cuts on top of last month's stiff austerity budget.
Markets have become worried that the severity of the cuts could fuel a recession, in turn hitting the country's ability to repay its debts, traders said.
"Obviously when the European debt crisis comes back into focus it is never a good sign for equity markets," Sydney-based Ben Le Brun, market analyst at OptionsXpress, said in a note, according to Dow Jones Newswires.
Security company G4S led the gainers, jumping 4.17 percent to 284.50 pence as shareholders digested its annual report, issued on Tuesday.
Broadcaster BSkyB dropped 1.38 percent to 645 pence and telecoms operator BT eased 1.14 percent to 216.10.
Source: AFP European Edition