The FTSE 100 Index enjoyed more festive cheer in the last full trading day before Christmas today though the pound took a knock after it emerged UK growth was not as strong as first thought.
London's top-flight was up 21.4 points to 6598.2 but the currency was lower as figures showed gross domestic product (GDP) increased by 2.6% between the third quarter of 2013 and the same period this year, down from a previous estimate of 3%.
With the recovery not as far advanced as previously announced, sterling came under pressure against the US dollar, slipping a cent to its lowest level in 16 months at 1.55. It was also slightly lower versus the euro at just over 1.27.
But the brighter picture for the FTSE 100 saw it build on last week's 3.9% rise.
The 'Santa rally' means there are still slim hopes that the top-flight can finish the year higher than its starting level of 6749 - avoiding its first fall since 2011.
The rally came even though the price of Brent crude continued to languish near the 60 US dollars a barrel mark, reflecting signs that Saudi Arabia is focused on maintaining its market share rather than cutting back production.
Elsewhere, Germany's Dax and France's Cac 40 were also ahead while New York's Dow Jones Industrial Average hit new heights as it surpassed 18,000 points for the first time.
Wall Street rallied on revised figures showing the US economy grew at the fastest rate since 2003 in the third quarter.
Meanwhile in London, Tesco recovered some of its recent losses to stand 2% or 3.6p higher at 184.6p while rival Morrisons was 4.4p stronger at 180.4p and Sainsbury's climbed 4.5p to 244.1p.
The first day of trading for Indivior, the pharmaceuticals business spun out of consumer products business Reckitt Benckiser, saw its shares jump by 25% or 30p to 150p.
Reckitt was 110p lower at 5200p after Exane BNP Paribas revisited its rating on the blue-chip stock in the wake of the demerger.
Housebuilders also peppered the fallers' board after the British Bankers Association reported a "sharp chill" in the housing market after the number of mortgage approvals made to home buyers slid by a fifth in November.
Persimmon fell 21p to 1572p, while FTSE 100 newcomers Barratt Developments lost 6.9p to 459p and Taylor Wimpey dropped 1.8p to 134.7p.
Meanwhile, chocolate maker Thorntons slumped 22% - off 26.2p to 92p - after it warned that its earnings will fall this year because of reduced demand from some supermarkets in the run-up to Christmas.
In October it told the market that it expected to meet full-year pre-tax profit forecasts of £9.65 million for the year to June, up almost a third from £7.5 million in its last financial year.
However it now expects profits for the current period will fail to grow after a "significant reduction" in demand from some supermarkets.
The biggest risers in the FTSE 100 Index were Tullow Oil up 12.7p to 419.7p, CRH up 47p to 1559p, Morrisons up 4.4p to 180.4p and Smiths Group up 26p to 1108p.
The biggest fallers in the FTSE 100 Index were Shire down 131p to 4533p, Reckitt Benckiser down 110p to 5200, AstraZeneca down 86.5p to 4516.5p, and Smith & Nephew down 19p to 1089p.
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