The FTSE began the week with a rally led by Centrica after OAO Gazprom, the world's biggest natural gas supplier, said it expects to make a British acquisition ‘in the near future'.
Other strong performers were mining companies led by Rio Tinto Group following a report from UBS AG suggesting M&A activity in the industry is likely to accelerate.
The FTSE 100 Index rallied 36.6, or 0.6% to 6541.7 in London while the FTSE All-Share Index was up 0.5% to 3381.66.
Barclays gained 2.4% to 740 pence after the Wall Street Journal reported hedge fund Atticus Capital has bought shares of the company and met with the bank to discuss dropping its bid for ABN Amro Holding NV.
BAE Systems, Europe's biggest weapons maker was another riser up 1.2% to 431.75 pence.
Japanese indices closed strongly on Friday led by domestic demand stocks and insurers.
The Nikkei 225 was up 0.3% to 17,834.48 at the close of trading while the Topix climbed 4.99, or 0.3% to 1761.15.
The rally came after a report on gross domestic product showed the nation's economy grew at a faster pace in Q1 than predicted.
Mitsubishi UFJ Financial Group and Nippon Telegraph & Telephone Corp, which rebounded from its lowest level in almost a year on June 8, led the rise of domestic companies.
A number of insurance companies jumped to their highest level in 17 years following speculation the GDP report will give the Bank of Japan reason to boost interest rates. This would allow insurance companies to earn better returns on their bond investments.
Wall Street also finished strongly on Friday afternoon, recouping a large part of the previous session’s near-200 point loss, as US Treasury bonds came back from their five year high at 5.25%.
The Dow Jones closed 157 points up at 13,424 while the S&P 500 rose 16 points to 1,507.
One riser was industrial conglomerate Tyco after it revealed it will break-up into three separate publicly traded firms.IFAonline
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