The FTSE 100 climbed to a new all-time high today as markets were boosted by the reshuffle of Greece's bail-out negotiating team following fierce criticism of finance minister Yanis Varoufakis.
London's top-flight added 33.3 points to reach a record close of 7104 during a session when it had earlier surged to a best-ever intraday level of 7122.7.
Germany's Dax and France's Cac 40 were also up strongly following the reshuffle by Greece, which was seen as sidelining the role of Mr Varoufakis, raising hopes that the deadlock in talks between the indebted nation and its creditors could be broken.
The main Greek stock index closed 4.4% ahead.
On Wall Street, the Dow Jones Industrial Average crept up at the start of a busy week for earnings and a meeting by the US Federal Reserve on interest rates.
Investors are braced for uncertainty ahead of this week's release of GDP figures for the UK and United States, with both countries set to show a slowdown in output growth in the first quarter of the year.
Sterling made gains against the greenback, adding a cent to over 1.52 US dollars, and was also up against the euro at just under 1.40.
In equities, Standard Chartered and HSBC led the FTSE 100 risers amid fresh speculation over HSBC's future in the UK.
The Sunday Times said the group was considering a £20 billion spin-off of the UK retail arm of the business, which was known as Midland bank before it was swallowed up by HSBC in 1992.
It comes after chairman Douglas Flint revealed to shareholders on Friday that the wider group would consider moving its headquarters out of the UK, explaining that it was responding to "regulatory and structural reforms".
HSBC rose by 3%, or 19.6p, to 649.3p but it was Asia-facing Standard Chartered, which also has its main base in London, which saw the strongest gains, on speculation it could follow suit. Its shares climbed 4%, or 45.5p, to 1115.5p.
Supermarket stocks punctuated the FTSE 100 fallers' board during a session to forget for Tesco after Friday afternoo''s credit ratings downgrade by Fitch.
The stock fell by 4p to 220.8p, with rivals Sainsbury's off by 2.1p to 266p and Morrisons down 0.8p to 193.3p.
In corporate news, Centrica shares were nearly 2% higher - up 4.6p at 269.1p - after it said it was trading in line with expectations.
However it said improved profitability in its residential supply business in the first quarter of the year was more than offset by lower commodity prices in its upstream production arm.
In the FTSE 250 Index, fashion chain SuperGroup rallied 5% on the back of a broker upgrade from RBC. Shares rose 46.5p to 991p.
The biggest risers in the FTSE 100 Index were Standard Chartered, up 45.5p to 1115.5p, HSBC up 19.6p to 649.3p, Hargreaves Lansdown up 34p to 1215p and Prudential up 36.5p to 1668.5p.
The biggest fallers in the FTSE 100 Index were Aggreko down 32p to 1640p, Tesco down 4p to 220.8p, Smith & Nephew down 16p to 1168p and United Utilities down 13.5p to 989.5p.
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