Traders set aside concerns over the Scottish referendum result and reacted positively to European Central Bank moves to strengthen the region's lenders.
European markets were stronger after the central bank handed out €82.6 billion (£65.1bn) in ultra-low interest loans to 255 banks, even though demand was still lower than many analysts had been expecting.
The FTSE 100 Index recovered from an uncertain start to stand 38.4 points higher at 6819.3, with many investors keeping their money off the table until after the result of the independence vote is announced this morning.
The pound strengthened to 1.64 ahead of the result, helped by a pledge from the US Federal Reserve that interest rates will remain low for a considerable time.
Sterling was also stronger against the euro yesterday, at 1.27.
However, the US central bank also indicated it could raise borrowing costs faster than expected once a change takes place, putting pressure on the safe haven asset of gold, which fell to an eight-month low overnight.
This impacted on a clutch of mining stocks, with Randgold Resources the leading faller in the top flight with a drop of 116p to 4430p.
Silver miner Fresnillo was down 15.5p to 782.5p and Rio Tinto dropped 10p to 3229.5p.
Low-cost airline easyJet gave a boost to its share price today by announcing it will increase the payout ratio for its full-year dividend from one third of profit after tax to 40 per cent when it presents annual results in November.
It also said it has reached agreement with Airbus to exercise purchase rights over 27 A320 aircraft for delivery between 2015 and 2018. Shares lifted 6p to 1344p.
Outside the top flight, shares in fashion chain French Connection fell sharply despite a further narrowing in losses in the retailer's half-year results.
It said it was on track to meet City forecasts for the full year but shares dived almost 14 per cent or 9.63p to 60.38p after the loss of £3.9 million came in slightly higher than some analyst predictions.
Mobile banking firm Monitise was among other big fallers after financial services business Visa said it was reviewing its 5.5 per cent stake in the group.
Shares in Monitise, which has 30 million registered users and hopes to become profitable by 2016, fell by more than one third, or 14.75p to 27.75p.
The biggest risers in the FTSE 100 were TUI Travel up 17.1p at 384p, Barratt Developments up 11.8p at 403.8p, Travis Perkins up 42p at 1697p and Smiths Group up 32p at 1300p.
The biggest fallers in the FTSE 100 were Randgold Resources down 116p at 4430p, Tullow Oil down 16p at 665.5p, Fresnillo down 15.5p at 782.5p and SABMiller down 40p at 3537p.
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