London's bluechip index rose for a second day on Tuesday, as the US Federal Reserve cut interest rates to protect the US economy from the impact of the coronavirus, marking the central bank's first emergency rate cut since the financial crisis.

Group of Seven finance officials also pledged "appropriate", unspecific policy moves as the coronavirus spreads around the world, hitting sports events, trade exhibitions and other large gatherings worldwide.

Britain's blue-chip index ended the day 1% higher, while the domestically focused mid-cap index rose 2%.

Banks ended the day in the red, down 2.13%, while miners and airlines up between 2.2% and 2.8%, after they were caught up in last week's rout that erased over $5 trillion from global equity markets.

"Global central banks, while not equipped to deal with a pandemic directly, have the tools to short-circuit the brutal sell-off," said Vishnu Varathan, head of economics at Mizuho Bank.

Australia's central bank cut interest rates to a record low on Tuesday, while those in Japan, Britain, France and the United States have signalled willingness to inject more cash into the system.

But analysts have expressed doubt about the efficacy of interest rate cuts amid severe disruptions to the supply chain. Several multinational companies including Rio Tinto and Diageo have flagged a hit to profits this year.