BREXIT and trade war optimism boosted global markets on Monday, as Commons Speaker John Bercow blocked the Government's planned meaningful vote on its Brexit deal.
Prime Minister Boris Johnson was looking for support from MPs after pulling the vote on Saturday when they forced him to ask the EU to delay Brexit.
But Mr Bercow said that parliamentary conventions meant the Government could not bring the same vote again.
The FTSE 100 dipped in the immediate aftermath of the news, but it bounced back soon after, closing the day up 13.07 points at 7,163.64.
However the rise was considerably below the morning peak of 7,196.42.
"Mr Johnson is hoping to get support for his deal in the next few days, and that has lifted sentiment in the markets," said David Madden, an analyst at CMC Markets.
"Traders are petrified of a no-deal Brexit, so a deal, or even an extension would be welcome. Like many in the business community, dealers dislike uncertainty, so some clarification on a deal or a delay should assist stocks."
Meanwhile, the market was boosted after Larry Kudlow, an economic adviser to US President Donald Trump, made positive noises over the country's trade war with China.
"Things look pretty good," he said. It helped push the FTSE higher despite downward pressure from the pound, which rose 0.45% to 1.2985 against the US dollar, said Connor Campbell, an analyst at Spreadex.
Sterling also rose against the euro, by 0.59% to 1.652.
"Of course, with everything Brexit nothing is certain, and things could well swing pound-negative in the next few sessions. However, at the moment investors feel comfortable with sending sterling to its best price since May," Mr Campbell said.
Germany's Dax was up by 1% to 12,758.44, while France's Cac was up by 0.35% to 5,656.13.
In company news, private equity giant Advent International is ready to commit to the Government that it will protect UK jobs at Cobham as it seeks approval for its £4 billion takeover of the defence firm.
Just Eat has posted rapidly growing sales in the third quarter despite a backdrop of "softer consumer spending".
The food delivery company saw sales jump 25% to £247.5 million in the three months to September, although this represented a slowdown from the prior half-year.
The boss of medical devices firm Smith & Nephew has announced plans to step down following a reported row over executive pay.
Namal Nawana is quitting as chief executive less than 18 months after joining the company from US diagnostics firm Alere.
M&G could be a candidate for a place in the FTSE 100 when the list is next updated as the investment manager reached a market value of nearly £6 billion on its first day of trading.
Europe-focused M&G spun off from Prudential on Monday morning in a bid to separate from the rest of its parent's mainly Asia-focused business.
The top risers on the FTSE 100 were Auto Trader, up 21p at 551p, Melrose Industries, up 6.7p to 212.7p, IAG, up 16.4p to 525p, Centrica, up 2.2p to 72.2p, and DS Smith, up 8.7p at 347.5p.
The biggest fallers on the blue chip index were Prudential, down 140p to 1,366p, Smith and Nephew, down 162p to 1,667.5p, Just Eat, down 35.6p to 589.4p, Reckitt Benckiser, down 133p to 5,872p, and Croda International, down 102p to 4,628p.
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 here