Hopes of a debt deal for Greece and fading prospects of a US rate rise this year lifted London shares on Thursday.
The International Monetary Fund (IMF) and the Federal Reserve backed debt restructuring for Athens, increasing pressure on other creditors to soften their stance.
Greek premier Alexis Tsipras is finalising another set of reform proposals to present to creditors in the hope of securing a fresh bailout programme]
Senior analyst at currency specialists FxPro, Angus Campbell, said: “The creditors resolve has been severely tested throughout this debacle and with patience wearing thin this time is Greece’s final opportunity to put forward something palatable. “
Analysts said sanguine US Fed minutes all but reassured markets that a US interest rate rise won’t be coming this year, citing Greece and China as ongoing cause for concern.
Although Wall Street closed in the red, Asian markets were positive on the Greek hopes and some stabilisation in China, which was buoyed by upbeat inflation data.
The FTSE100 index lifted 36.62 points to 6527.32 and markets in Frankfurt and Paris were also up.
Primark owner Associated British Foods (LON:ABF) was 96p tastier at 3027p on strong European trading.
Gaming group Bwin.Party (LON:BPTY) ticked up 2.2p to 101.3p on news of a £900mln takeover offer from Sportingbet operator GVC Holdings.
Barratt Developments (LON:BDEV) was 9.5p higher at 604p as it forecast a 45% rise in annual profits.