Blue-chip stocks were on the front foot after the long weekend as traders caught up with advances on Wall Street spurred by optimism over the US economy.
The Square Mile tracked progress across the Atlantic as the FTSE 100 Index climbed 47.5 points to 6822.8 while Germany's Dax and France's Cac 40 were also ahead.
In New York, the S&P 500 had broken through the 2,000 barrier for the first time yesterday with confidence boosted by the improved outlook.
The latest session also saw Wall Street higher, buoyed by corporate deals involving Burger King and Amazon as well as US data showing a surge in orders for manufactured goods and consumer confidence at a seven-year high. Trading volumes were light, with progress likely to be tested later in the week by publication of the second estimate of the US GDP figures on Thursday.
On currency markets, sterling was little changed at just under 1.66 US dollars and a little below 1.26 euros.
But the pound's recent strength was a factor in corporate updates as it has caused a headache for UK-listed firms with overseas earnings.
This was highlighted by cleaning and household supplies firm Bunzl and advertising and marketing giant WPP, although shares in the FTSE 100 pair were still higher despite the impact on half-year results.
Bunzl, which supports businesses worldwide by supplying items such as carrier bags and other packaging, reported a two per cent rise in profits to £132.3m.
Shares were 9p stronger at 1639p, leaving the FTSE 100 stock up 13 per cent since the start of the year.
There was a larger gain in the session for WPP, which climbed 17p to 1244p after reporting a 1.5 per cent rise in profits to £532m as it grew business in the UK and US to offset weaker trading in continental Europe. The company, led by founder and chief executive Sir Martin Sorrell, highlighted a range of uncertainties such as a fragile eurozone and unstable Middle East. But shares rose after it said July net sales were up 2.8 per cent on a like-for-like basis, against a strong comparative growth rate in 2013 of 4.1 per cent.
Elsewhere on the FTSE 100 risers board, Associated British Foods rose 59p to 2871p after analysts at JP Morgan Cazenove said they expected the fashion chain to double profits over five years.
Airline stocks were climbing with British Airways firm International Airlines Group lifting more than three per cent, or 12.1p, to 358.1p while easyJet rose nearly three per cent, or 35p, to 1354p.
The biggest risers were International Airlines Group up 12.1p to 358.1p, CRH up 41p to 1420p, easyJet up 35p to 1354p and Ashtead up 23p to 973p.
The biggest fallers were Antofagasta down 9.5p to 798.5p, Reckitt Benckiser down 55p to 5210p, Rio Tinto down 35p to 3357.5p and Fresnillo down 9p to 912.5p.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article