The FTSE-100 index touched a five-year high as global stock markets soared after much better-than-expected US jobs figures.

The top tier in London closed 60.75 points up at 6521.46 – its highest finish since mid-March – after hitting an intra-day level not seen since December 2007.

Closely-watched data showed the world's biggest economy added an extra 165,000 jobs last month, while figures for March and February were also revised higher.

That offset the EU's downgrade of its economic forecasts, with the eurozone's economy expected to shrink 0.4% this year.

On Wall Street, the Dow Jones industrial average smashed through the 15,000 points level for the first time.

Meanwhile, the challenges facing taxpayer-backed Royal Bank of Scotland kept its shares under pressure despite its best quarterly profits haul since 2011.

Shares in the group closed down almost 6%, falling 17.5p to 289.8p, despite pre-tax profits of £826 million for the first quarter and its message that the Government could start selling off shares next year.

RBS topped the fallers board despite comments by Sir Philip Hampton, chairman of the 81% state-owned bank, who said the institution's recovery would be "substantially complete" by the middle of 2014.

But the bank's investment banking division saw earnings more than halve to £294m from £826m a year ago.

Fellow part-nationalised bank Lloyds Banking Group was 0.2p lower at 54.1p.

There was optimism over better-than-expected UK services figures, after the latest Markit/CIPS purchasing managers' index (PMI) showed activity in the sector leapt ahead again in April, driving forward growth for the wider economy and boosting hopes of a sustained recovery.

Sterling made modest gains against the dollar but lost a little ground on the euro, making a pound worth 1.56 dollars and 1.19 euros.

Miners helped propel the London market higher, with Eurasian Natural Resources surging 30.3p to 292.7p and Antofagasta gaining 70.5p to 983p. Glencore Xstrata was 12.8p higher at 343.9p on its first day of trading since the creation of a new natural resources giant through commodity firm Glencore's takeover of mining giant Xstrata.

General insurer Direct Line, which is 48% owned by RBS, was 2.2p lower at 201.6p as it highlighted the difficult car insurance market with a fall in gross written premiums. Operating profits were 33% higher in the first quarter, helped by cost cuts.

It said its refusal to get sucked into a price war in the fiercely competitive motor insurance market hurt first-quarter premiums, down 4.5% during the first three months of the year to about £1 billion.

Among the biggest risers on the Footsie were John Wood Group, 38p higher at 804.5p, and IMI, up 62p to 1282p.