The FTSE 100 index has ended the day up 36.3 points or 0.66%, to 5,531.6, with Daily Mail and General Trust leading the advance.
Shares in Amvescap claimed the second biggest gain of the day with a rise of 15.5p or 3.69% to 436p, closely followed by Northern Rock which added 30p or 3.35% to 925.5p.
Daily Mail & General Trust was the biggest riser of the day, adding 31p or 4.33% to 746.5p, while Reckitt Bencksier also performed well, with gains of 55p or 3.06% to £18.55.
Meanwhile, Carnival was the biggest faller of the day, dropping 76p or 2.36% to 3,150p, despite posting fourth-quarter profits that rose by 20%. Vodafone also slipped 1.75p or 1.4% to 123.5p, closely followed by P&O which fell 4p or 0.85% to 466p.
In the US, the Dow Jones Industrial Average index has gained 41.64 points or 0.38% to 10,923.31, as investor sentiment improved for the likes of Johnson & Johnson and United Technologies.
Johnson & Johnson has gained $0.96 or 1.6% to $61.12, after the maker of drugs and medical devices said it would acquire Animas, a maker of insulin delivery systems.
Also helping is United Technologies, whose shares have risen 1.68% to $58.57, after CIBC raised its rating on the conglomerate citing strong confidence in 2006 growth.
Elsewhere, software maker Oracle has fallen 5.3% to $12.15, as it posted lower quarterly profit, while Sirius Satellite Radio is down 2.79% to $6.97.
But a drop in crude oil futures of $0.49 to $59.50 a barrel has helped the market by reducing worries high oil prices would dig into corporate profits and consumer spending.
A strong quarterly report from Adobe Systems has pushed its shares up 9.1% to $38.11, while eBay has risen 0.52% to $46.26, a day after a Goldman Sachs analyst said the stock had the potential to rise 20%.IFAonline
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Dispute over structure of combined group
Financial Guidance and Claims Bill
Favorable tax treatment
What made financial headlines over the weekend?