Blue-chip investors shrugged off jitters over Greece today as stimulus measures from China lifted sentiment for mining stocks, helping the top-flight to push higher.
The FTSE 100 Index rose back above the 7000 barrier to finish 57.5 points ahead at 7052.1, despite fears that Athens may run out of money on Friday unless its debt-laden government makes progress in talks with the International Monetary Fund.
Worries over a Greek debt default had sent markets lower on Friday but today the mood was buoyed by a decision by China's central bank to cut the required reserve ratio for banks by 1%.
The stimulus measure in the world's second largest economy will allow the banks to lend out a higher proportion of their deposits.
Financial stocks with operations in the region did well, with HSBC up 2%, or 13.3p, to 613.3p while Standard Chartered climbed 10.5p to 1060.5p. Prudential was 23.5p higher at 1660p.
Measures to boost growth in China come after official data last week showed quarterly expansion has weakened to its slowest since 2008.
They helped a clutch of commodity stocks head towards the top of London's top-flight risers' board, with Anglo American up nearly 3%, or 27.5p, to 1038p, Rio Tinto ahead by 73p at 2874p and BHP Billiton up 35.5p to 1481.5p.
In Europe, Germany's Dax climbed strongly with France's Cac 40 also ahead.
On currency markets, the pound lost further ground against a strengthening dollar at 1.49 while it was little changed against the euro at just under 1.39.
In London, Lloyds Banking Group was 0.2p lower at 78.6p after Chancellor George Osborne said a Conservative government would sell shares in the part-nationalised bank to small investors at a 5% discount.
The planned public offering includes a promise of extra shares for investors who hold their stock for at least a year.
Among risers in the FTSE 100 Index, InterContinental Hotels followed up a big increase on Friday with a gain of 2% or 64p to 2786p as takeover speculation continued to surround the Crowne Plaza operator.
On the FTSE 100 fallers board, Tesco shares were 1.7p lower at 235p as investors geared up for this week's annual results, with the grocer set to announce a big full-year loss due to property write-downs.
In the second tier, shares in oil services firm Petrofac slid 10% after it issued a profits warning due to the cost of building the Laggan-Tormore gas plant on the Shetland Islands for Total.
It blamed bad weather conditions during March as well as the impact of industrial action, which has delayed the final construction and commissioning phases of the project by almost a month. Shares were off 101.5p at 912.5p.
The biggest risers in the FTSE 100 Index were Ashtead up 32p to 1144p, Anglo American up 27.5p to 1038p, Rio Tinto up 73p to 2874p and BHP Billiton up 35.5p to 1481.5p.
The biggest fallers in the FTSE 100 Index were Fresnillo down 12.5p to 716p, Associated British Foods down 43p to 2863p, Capita down 14p to 1107p and G4S down 3.2p to 295p.
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