The FTSE 100 Index edged up a further 822.22 points, or 1.4%, to 5,935.98 today.
Brent crude also rose in value, up 2.2% at $30.38 per barrel by 6pm as the global oil benchmark also benefitted from improving sentiment in the markets.
Royal Bank of Scotland was among the top Footsie risers, up 5.45% at 114.1p, and Barclays lifted 4.52% to 105.42p as financial services enjoyed a feel-good bounce.
At the other end of the scale, BT Group plunged more than 8% to 104.95p after the telecoms giant scrapped its dividend for the next two years as it copes with the fallout from Covid-19.
Chief executive Philip Jansen, who recently recovered from the disease, announced a new target of full fibre to 20 million UK homes by the mid to late 2020s.
But investors reacted angrily to the dividend cut, with shares plunging to all-time lows.
The dividend decision came after BT’s revenue fell 2% to £22.9 billion in the year to March 31, due to declines in legacy products and impacts from regulation. Pre-tax profits fell to £2.35bn, from £2.67bn a year earlier.
In other City news, the owners of Virgin Media and O2 confirmed £31bn mega-merger plans for the two mobile network operators.