Australia's central bank also stated that the new variant outbreak was unlikely to derail the current financial recovery.

Travel and leisure stocks got a boost, as well as miners, lifting the FTSE 100 by 1.2%. the top performer was plumbing parts distributor Ferguson, which gained 4.8% after posting strong revenue guidance.

Investors also cheered a change in monetary policy in China reducing the amount of cash that banks must hold in reserve. The move injected around $188 billion funds to boost the economic growth.

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