Banks led the FTSE 2% higher in late trading on Thursday as positive economic news from the Eurozone eased fears of a double-dip recession.
Shortly before 4.15pm GMT, London's leading index had advanced almost 100 points, or 1.94%, to reach 5,312.
Both manufacturing and service sector output in the Eurozone grew faster than expected in July, dousing widespread fears of a double-dip recession.
In London, blue-chip banks were cheered following strong second-quarter earnings from US counterparts Morgan Stanley and Wells Fargo, and bets Friday's key stress testing of some European banks will not be as bad as previously thought.
Barclays advanced 12.5p to 302.75p, Lloyds Banking Group was up 2.1p to 63.1p, and Standard Chartered was 66p better at £18.35.
Wall Street's Dow Jones also saw gains of almost 2% early on following another round of strong corporate figures from the likes of Caterpillar and AT&T.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till