Hopes of an imminent bailout for Spain sent global stock markets higher today as investors cheered the prospect of a more stable eurozone.
The FTSE 100 Index raced more than 1% or 64.9 points higher to 5,870.5, while there were sharp gains across Europe amid the eurozone optimism.
Banking stocks were boosted by the improved mood, with better-than-expected third quarter figures from US group Goldman Sachs adding to the gains.
In London, Royal Bank of Scotland rose 11.9p to 280p, Barclays added 9.25p to 246.1p, while Lloyds Banking Group rose 6%, or 2.4p to 42.8p.
Mining stocks were also encouraged by the momentum in the eurozone, with Evraz rising 14.5p to 243.7p and Polymetal International adding 34p to £11.60.
Outside the top flight, Sportingbet pared earlier gains to stand 0.5p higher at 53.5p after the online gamer said it would back an increased takeover offer from Britain’s biggest bookmaker William Hill.
The biggest Footsie risers included Admiral 56p higher at £11.75.
Among the biggest Footsie fallers were GKN down 7.1p to 204.8p, International Consolidated Airlines Group off 2.4p to 155.6p, Capita down 6p to 733p and Intercontinental Hotels 11p lower at £15.93.
Barry Shepherd, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted that risers included Weir Group, which finished the day 2.97% stronger at £17.71.
On the fallers board, Xcite slipped 0.96% to close at 103.75p and Stagecoach drifted 0.86% lower to 278p.