Signs of hope for the global economy helped the FTSE 100 Index break a four-day losing streak today as it surged 1.4% higher.
The Footsie rose 77 points to 5,523.9, with similar gains across indices worldwide as investors reacted to speculation that China will announce measures to kick-start its economy and noted better figures on the US economy.
Banks were among those leading London’s main market higher, including Barclays, which rose 1.9%, or 3.7p to 196.1p despite it agreeing to pay penalties of £290million to settle claims that it manipulated interbank lending rates.
Lloyds Banking Group was another leading riser, with shares 1.1p higher at 31.2p after news of progress in its deal to sell 632 branches to the Co-operative Group.
Royal Bank of Scotland was the biggest faller but recovered some of the ground lost following its IT meltdown to rise 5.4p to 233.1p.
Standard Chartered was higher, up 41p to £13.75 despite it saying it expected revenue growth in the first half of 2012 to be slower than a year ago due to weakness in Asian currencies.
Commodities giant Glencore fell nearly 2%, or 4.4p to 298.3p amid fears a mega-merger with Xstrata will collapse.
Xstrata was also slightly down, off 10.8p at 796.6p, despite hopes the terms of the merger will be revised.
Retail stocks were mixed despite figures from the CBI showing the sector enjoyed its fastest growth for one and a half years in June.
Primark owner Associated British Foods was among the biggest risers, up 30p at £12.67, but Next and Marks and Spencer were down 53p at £31.42 and 1.6p to 319.4p respectively.
Stuart Lamont, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, highlighted BG Group up 3.8% at £12.56 and Aberdeen Asset Management 3.1% stronger at 257.7p.
Scottish fallers included Aggreko down 3.3% to £19.61, A.G. Barr 1.2% weaker at £4.12 and Stagecoach Group off 0.6% at 261.55p.