The central bank announced it would end its unprecedented bond purchase scheme by the end of this year, but said it would maintain rates at record lows at least through the summer of 2019.
The FTSE 100 rose 0.3 percent by 1240 GMT, having fallen as much as 0.7 percent earlier when a more hawkish rates outlook from the Fed weighed on equities.
High dividend-yielding healthcare stocks, which are sensitive to interest rates, were the top boosts to the index, while “bond proxy” consumer goods stocks including Imperial Brands and British American Tobacco also reversed losses.
“While yesterday’s Fed hike was very much “hawkish”, in our view, the ECB opted to announce the end of its net asset purchases with a dovish flavour,” said Luigi Speranza, head of European market economics at BNP Paribas.
In notable single-stock moves, Unilever shares fell 3.3 percent, the biggest weight on the FTSE, after the consumer goods giant said a truck drivers’ strike in Brazil would hit sales more than expected.
Unilever also said it was “extremely unlikely” to stay in the FTSE 100 after its headquarters move to the Netherlands.
Rolls Royce shares gained 3.9 percent after the engine maker announced it would cut 4,600 jobs, targeting 400 million pounds of annual savings in a restructuring effort that investors welcomed.
The biggest boost to the index was pharmaceutical company GlaxoSmithKline which gained 0.7 percent after its two-drug treatment for HIV met its main goal in late stage studies.
“At face value this is good news as competition in the HIV space has heated up, threatening GSK’s highest-margin business,” said UBS analysts, adding that they needed to see more details on the trial.
Mining stocks weighed after copper prices slipped to a one-week as weaker Chinese data, including industrial output, pointed to lower-than-expected activity last month.
Rio Tinto, Glencore, Antofagasta and BHP Billiton were among the biggest fallers, down 0.8 to 2.1 percent.
Stocks going ex-dividend – including Persimmon, Severn Trent, Intermediate Capital and WPP – took 4.5 points off the index.
Retail sales data for May smashed forecasts as the royal wedding and sunnier weather drove Britons to spend more freely.
The FTSE 100 outperformed European markets in May, and Bank of America Merrill Lynch’s June fund manager survey showed investors’ underweight in UK stocks fell to its smallest in more than a year.
Among mid-caps, Aveva shares rose 12.1 percent to a record high after the engineering software company reported better full-year results and targeted cost savings of 25 million pounds.
“The first update on financials for the combined pro forma business reads well,” said Investec analysts.