London's FTSE 100 Index powered nearly 1% higher as hefty gains from BP helped it overcome a second day of trading being suspended in storm-ravaged New York.

As the FTSE 100 closed, the New York Stock Exchange (NYSE) and Nasdaq confirmed they would reopen on Wednesday following the two-day closure after Hurricane Sandy ripped through the East Coast of America.

It is the first time since 1888 that the NYSE remained closed for two sessions in a row due to the weather, but a 4% hike from oil giant BP helped the Footsie shrug off the uncertainty - closing up 54.8 points at 5849.9.

BP lifted 17.9p to 442.9p as the group said it would deliver a bigger-than-expected 12.5% increase in its quarterly dividend to 9 US cents (5.6p) a share.

Chief executive Bob Dudley hailed the group's "strong progress", despite profits falling to 5.2 billion US dollars (£3.2 billion) as a result of its far-reaching disposal plan hitting production.

In currency news, a survey revealing stronger-than-forecast retail sales growth helped the pound rise to just under 1.61 US dollars, although it slipped back to 1.24 euros.

Imperial Tobacco joined BP in making gains after the JPS and Lambert & Butler cigarette maker increased its full-year dividend by 11% and reported an 8% rise in annual earnings.

The Bristol-based group offset a dip in global cigarette volumes with price hikes and improved product mix as it reported a 3% rise in pre-tax profits to £2.6 billion. Shares were 2% or 38p higher at 2370p.

Banking giant Standard Chartered was one of the biggest fallers after it said that its operating profit for the first nine months had been hit by a settlement with a US authority over alleged sanctions violations.

The bank has agreed to pay 340 million US dollars (£211 million) to a New York regulator to settle accusations that it hid illegal transactions with Iran, which it said pushed profit growth down into mid-single digits from a double-digit range.

Standard shares were 1% or 14p lower at 1483.5p.

And National Grid came under pressure as its US arm dealt with the impact of the superstorm in a number of its regions, including New York and Rhode Island. Shares were off 5.5p at 702.5p.

Outside the top flight, Premier Foods shares jumped after the Hovis and Mr Kipling maker struck another deal to sell one of its non-core brands.

Branston, which includes the famous pickle brand, will be sold to Japan's Mizkan in a deal worth £92.5

million that takes proceeds from its disposal programme to £370 million - £40 million more than its original target. Shares were ahead 7.5p at 109p.

The biggest Footsie risers were BP ahead 17.9p to 442.9p, Barclays ahead 7.8p to 238.8p, Resolution 6.5p higher at 213.7p and GKN up 5.6p to 210.1p.

The biggest Footsie fallers were United Utilities down 19p to 695p, Randgold Resources off 85p to 7250p, Standard Chartered 14p lower at 1483.5p and National Grid down 5.5p to 702.5p.