The FTSE rose 0.65%, or 40.7 points, to 6346.9p this morning as Alliance & Leicester rose 10.39%, or 66 points, to 701.5p after saying it has enough funding to see through to the third quarter of next year.
Invesco rose 3.99%, or 25p, to 696p after its interim results showed net profits rose 38% to £104.4m in the six months to the end of September.
Mitchells & Butlers fell 4.11%, or 25.5p, to 595.5p after the pub chain owner’s interim results showed a £10m loss after a property transaction came to a halt.
Cadbury Schweppes fell 1.3%, or eight points, to 607p as Canadian competition regulators investigate the confectionary and drinks manufacturer over price-fixing allegations.
In the US, the Dow Jones rose 2.55%, or 331.01 points, to 13289.45 as American International Group jumped 5.93%, or 3.23 points, to 57.72 after analysts said investors had overestimated the company’s sub-prime mortgage losses.
Home Depot and GEN Motors also had strong days.
Japanese stocks climbed after comments by Federal Reserve vice chairman Donald Kohn raised expectations the central bank will cut interest rates, easing concern growth will stall in Japan's biggest overseas market.
The Nikkei 225 gained 359.96, or 2.4%, to 15,513.74 at the close of trading in Tokyo.
020 7034 2636
£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards