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London's benchmark FTSE 100 index jumped 1.14 percent to 6,594.68 points around midday -- and in the wake of official data showing a drop in British inflation.
LONDON: Europe's main stock markets rebounded on Tuesday as investors reacted to company updates and regional economic data, a day after indices had slid on China slowdown concerns and Ukraine tensions.
Frankfurt's DAX 30 rallied 1.50 percent to 9,326.16 points, with traders shrugging off news of falling German business confidence.
In Paris, the CAC 40 advanced 1.28 percent to 4,330.96 points compared with Monday's closing value.
"There was no shortage of early risers in the UK equity space... as the rebound from six week lows gains momentum on positive corporate news," said Alexander Young, senior trader at CMC Markets.
EasyJet shares advanced 4.78 percent to 1,710 pence after the British no-frills airline said it expected to report lower losses than thought for its first half year.
Home improvements group Kingfisher soared 7.18 percent to 435.7 pence after it said that it would return money to shareholders alongside new of a jump in annual profits.
On the downside, Royal Mail lost 1.63 percent to 574.5 pence after Britain's main postal operator said it planned to axe 1,600 jobs under a fresh cost-cutting drive six months after the group was partly privatised.
In foreign exchange trading on Tuesday, the euro fell to $1.3815 from $1.3839 late on Monday in New York.
The European single currency dropped to 83.71 British pence from 83.88 pence, while the pound grew to $1.6503 from $1.6498 on Monday.
On the London Bullion Market, the price of gold grew to $1,314.90 an ounce from $1,310.75 on Monday.
Britain's 12-month inflation slowed to 1.7 percent in February, the lowest level for more than four years, official data showed on Tuesday.
In January, it had stood at 1.9 percent, just under the Bank of England's target rate of 2.0 percent.
With inflation low and British unemployment not yet below 7.0 percent, the Bank of England's Monetary Policy Committee is likely to keep its main interest rate at a record-low level of 0.50 percent this year, according to economists.
Elsewhere, the German Ifo business confidence fell for the first time for five months in March, as the Crimea crisis hurts sentiment in Europe's biggest economy.
The Ifo economic institute's closely watched business climate index fell to 110.7 points this month from 111.3 points in February.
Russia on Tuesday said that its suspension from the G8 group of major economies was counterproductive as Ukraine pulled more troops out of Crimea, effectively acknowledging defeat following Moscow's annexation of the Black Sea peninsula.
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