London close: Markets rebound after steep losses

- Global markets rebound after yesterday's losses- Man Group jumps as UBS speculates over M&A- Shell makes 220p-a-share offer for CoveLondon's FTSE 100 index clawed its way back above the 5,700 level on Tuesday afternoon after a broadly stronger start on Wall Street. Europe's major benchmarks were making solid gains today following a steep sell-off the day before on the back of some gloomy manufacturing data and political uncertainty.In domestic news, UK government borrowing was £18.2bn in March, higher than the £16bn that had been expected. It was the second month in a row that borrowing exceeded the previous year's total. The Office for National Statistics said this left the government with a budget deficit of £11.1bn in March. Net debt, excluding the temporary effects of financial interventions, reached £1.02tn, equivalent to 66% of GDP, the highest percentage on record. This compared with £905.3bn - 60.5% of GDP - at the end of March 2011. FTSE 100: Man and IAG lead the riseHedge fund manager Man Group was leading the rise in London ahead of its quarterly AUM update next week. UBS reiterated its buy recommendation on the stock this morning, saying that the firm is a "likely take-out candidate" and is on its 'M&A Watch List'. "With Man Group shares having traded below 150p for a six-month period, we believe that a 50%+ premium bid offer to the current share price would be sufficient to obtain shareholder approval," the Swiss broker said. Shares of International Consolidated Airlines Group (IAG) were flying high on Tuesday after Credit Suisse upgraded the stock from neutral to outperform. While the broker is expecting a first-quarter operating loss of €239m, it says that an encouraging outlook for summer pricing should boost sentiment. Financials were performing well today with Lloyds, Barclays and Aviva among the top risers by the close. Barclays was being helped by positive commentary from Investec this morning which reiterated its buy recommendation on the stock ahead of its first-quarter results on Thursday. The broker said that it continues to expect a beat in the first quarter despite recent upward revisions to consensus expectations. Oil giant Royal Dutch Shell was making gains after making a 220p-a-share recommended cash offer for Cove Energy, up from the proposed offer of 195p per share back in February. Business process outsourcing and professional services group Capita was a heavy faller after proposing to placing 40m new ordinary shares (equal to 6.5% of its existing issued share capital) to raise additional capital to make further bolt-on acquisitions and pay down debt. The placing price was 685p per share compared with the 729p closing price on Monday.Smartphone chip designer ARM Holdings fell despite seeing profits jump again in the first quarter as digital technology continues to spread. The firm reported adjusted pre-tax profits of £61.9m in the first three months of 2012, up 22% on the year before. FTSE 250: Redrow up, Carpetright down House builder Redrow rose after announcing a placing and open offer to raise nearly £80m. It also said sales activity this year has been encouraging with its sales per site are the top end of the range for the sector, while like-for-like (LFL) reservations are ahead of last year. ?? Carpetright was falling after saying that group sales in the 11 weeks to April 14th were down 4.2% year-on-year and full-year underlying pre-tax profit would be well under market expectations. Transport group Stagecoach was a high riser after UBS upgraded the stock from neutral to buy, saying that after its 20% underperformance in the year-to-date (relative to the FTSE 250), it is now at a "good price". FTSE 100 - RisersMan Group (EMG) 97.00p +4.81%Aviva (AV.) 311.60p +4.18%International Consolidated Airlines Group SA (CDI) (IAG) 168.50p +3.63%Lloyds Banking Group (LLOY) 30.35p +3.28%Barclays (BARC) 211.00p +3.15%CRH (CRH) 1,232.00p +2.75%Antofagasta (ANTO) 1,169.00p +2.54%National Grid (NG.) 667.50p +2.22%Hammerson (HMSO) 417.00p +2.21%Reed Elsevier (REL) 526.00p +2.04%FTSE 100 - FallersCapita (CPI) 682.50p -6.38%ARM Holdings (ARM) 531.50p -6.18%British American Tobacco (BATS) 3,157.00p -1.76%Burberry Group (BRBY) 1,407.00p -1.33%Imperial Tobacco Group (IMT) 2,491.00p -1.07%British Sky Broadcasting Group (BSY) 672.00p -1.03%Serco Group (SRP) 539.00p -1.01%Weir Group (WEIR) 1,634.00p -0.79%Polymetal International (POLY) 950.00p -0.68%Morrison (Wm) Supermarkets (MRW) 288.50p -0.55%FTSE 250 - RisersRedrow (RDW) 126.00p +7.69%Supergroup (SGP) 354.90p +5.94%Bodycote (BOY) 423.40p +5.67%Kesa Electricals (KESA) 55.40p +4.92%Ultra Electronics Holdings (ULE) 1,719.00p +4.82%Centamin (DI) (CEY) 66.35p +4.49%Berkeley Group Holdings (The) (BKG) 1,266.00p +4.03%Ocado Group (OCDO) 113.50p +3.84%Barratt Developments (BDEV) 129.40p +3.77%CSR (CSR) 201.90p +3.75%FTSE 250 - FallersSVG Capital (SVI) 277.20p -2.46%Kenmare Resources (KMR) 49.75p -2.26%Aquarius Platinum Ltd. (AQP) 135.20p -2.17%Jupiter Fund Management (JUP) 227.10p -2.11%BBA Aviation (BBA) 194.00p -1.97%Heritage Oil (HOIL) 138.10p -1.92%Petropavlovsk (POG) 451.80p -1.91%Victrex (VCT) 1,434.00p -1.85%Ruspetro (RPO) 190.00p -1.81%IG Group Holdings (IGG) 460.00p -1.79%BC