London stocks rebounded on Tuesday, tracking gains across broader markets, a day after recession fears in the United States triggered a brutal sell-off across markets, while a slew of positive corporate earnings also helped boost the recovery.

By 0710 GMT, the blue-chip FTSE 100 index was up 0.6%, after logging its worst fall in more than a year on Monday.

The mid-cap FTSE 250 index added 1.3%. It fell to its lowest level in over three months in the previous session.

Weaker U.S. data in the last week stoked recession fears in the world's biggest economy, pushing investors to safe-haven assets amid a sell-off that battered markets globally.

However, Monday's data showing a rebound from four-year lows in U.S. services sector activity in July, alongside comments from Fed policymakers that partially soothed investors and helped scale back some losses.

In London, travel and leisure shares were among the top gainers, rising 1.9%. InterContinental Hotels Group advanced 2.8% after the Holiday Inn-owner reported a 3.2% rise in revenue per available room (RevPAR) in the second quarter.

Construction and materials shares gained 2.4%, lifted by a 13.4% rise in Keller Group after it reported its half-yearly results. The stock topped the FTSE 250 index.

Heavy-weight banks gained 1%. A check from the Band of England showed that Britain's top eight banks could be wound down in a crisis without the immediate need for taxpayer cash.

Energy shares trended 0.9% higher as oil prices rebounded by over 1%.

Most sectors rebounded after ending the session in the red on Monday.

Domestic homebuilding and construction activity figures for July are due later in the day, in an otherwise data-light week.

Attention will be commanded by a host of Fed policymakers, scheduled to speak throughout the month.

Among other stocks, Travis Perkins sank 2.8% to the bottom of the FTSE 250 after the building materials supplier cut its annual earnings guidance after reporting a 33% decline in first-half profit.

(Reporting by Purvi Agarwal in Bengaluru; Editing by Sonia Cheema)