The FTSE 100 opened higher, up 0.35% or 18.22 points to 5,196.74 following Wall Street's late rally.
Banks led early morning gains, with Lloyds Banking Group advancing 1.79% to 59.75p, while Royal Bank of Scotland rose 1.35% to 47.35p.
Market casualties include British American Tobacco. It dropped 0.77% to £21.36 after revealing that its chief operating officer Nicandro Durante will become CEO in February when Paul Adams steps down.
BAT rival Imperial Tobacco Group was also among early fallers, down 0.57% to £19.03.
Meanwhile, shares in embattled oil giant BP dipped 0.15% to £3.33.
On Wall Street, the Dow Jones was largely unchanged after having suffered falls in early trading.
The index ended the day up 0.05% or 4.92 points to10,298.44.
Markets sold off in the morning session after new home sales slumped to their lowest level on record in May. However, news the US Federal Reserve again held its Fed Funds rate at near zero caused shares to rally.
In Japan, the Nikkei was unchanged at 9,928.34, an increase of 0.05% or 4.64.
Shares in Softbank Corp, the exclusive iPhone operator in Japan, rose 2.79% as iPhone 4 made its global debut.
Partner Insight: Continuing the Architas education series for clients.
What made financial headlines over the weekend?
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