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Better than expected results from Sainsbury saw its shares rise 11.3p to 260.3p.
Better than expected results from US group Alcoa seem to have outweighed the Chinese worries.
It said stronger than expected results from its wireless business would make up for a shortfall in broadband business.
Better than expected results from Citigroup, the latest US bank to update the market, also helped sentiment.
Mr. Caldwell said he expected results from a union vote on the proposed contract by mid-August.
Miners took heart from better than expected results from US group Alcoa, ignoring the signs of a slowdown in China.
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American Skiing, which is based in Bethel, Me., also said it expected third-quarter earnings to fall below projections because of the cost of the restructuring and merger activities and weaker-than-expected results from the company's real estate subsidiary.
The same went for better-than-expected results from high street chain Next.
The Fed's report heartened bullish investors who pointed to better-than-expected results from JPMorgan Chase and Wells Fargo & Company.
Boeing said it also benefited from stronger-than-expected results from its military business.
Not even the stronger-than-expected results from Morgan Stanley, one of the nation's biggest investment banks, could drown out the drumbeat of bad news in the markets.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com