The FTSE 100 closed out Monday at 5,824, some 116 points or 2% higher, as attentions remained on London.
Early on sentiments were lifted by stimulus in Asia, and a US market holiday meant there were fewer distractions to the rally.
In Europe, meanwhile, stocks were boosted by the suggestion that the ECB was talking to the Italian government about buying bad loans from the country’s banks using its asset purchase programme.
Consumer goods firm Reckitt Benckiser (LON:RB.) was the top performing stock in London’s blue-chip benchmark, gaining 6.7% to end the day at 6,371p per share.
Asia focussed bank Standard Chartered (LON:STAN) wasn’t far behind, rising 5.6% to 453p.
This morning, the Nikkei closed more than 1,000 points ahead despite weaker GDP figures. Analysts said the data had boosted expectations that Tokyo would inject further stimulus into the economy.
HSBC (LON:HSBA), which has just decided against a relocation to the far-east, meanwhile, rose nearly 1.4% to 446.4p.
Across the FTSE 350 the rally was quite broad, with little distinction between sectors.
The top risers included financial IT group Fidessa (LON:FDSA), which climbed 12% to 1,985p, Enterprise Inns (LON:ETI) meanwhile gained 7.74% to 80p and Tullow Oil (LON:TLW) added 7.6%.
On AIM, 88 Energy (LON:88E) again lit up the small cap risers, advancing 132% to end Monday at 2.6p per share.
“Smart buildings” specialist Coms (LOM:COMS) gained over 40% on the same day it told investors that most of the legacy issues inherited by the current board have been resolved. It also said results for the year to the end of January 2016 will be ahead of expectations.
Action Hotels (LON:AHCG) rose 14% to 52p, after a well-received trading update.
Talk of European Central Bank "Italian Job" buoys shares
Talk of the European Central Bank doing an Italian job lifted stock markets in the UK and continental Europe on Monday.
The FTSE MIB in Milan was flying more than 650 points higher on reports that the ECB was talking to the Italian government about buying bad loans from the country’s banks using its asset purchase programme.
The FTSE 100 Index in London responded with a 134-point gain to 5841, Germany's DAX put on 277 points and France's CAC-40 lifted 146 points.
Earlier, the Footsie had taken its cue from the Nikkei, which closed more than 1,000 points ahead as weak Japanese GDP data sparked hopes that Tokyo would boost economic stimulus.
Back in the UK, HSBC (LON:HSBA) said it had decided to keep its corporate headquarters in London, but hinted that a UK decision to leave the EU could spark a rethink. Shares rose 4.8p to 445.2p.
That was less than rivals such as Barclays (LON:BARC), which lifted 4.4p to 161.6p, while Lloyds Banking Group (LON:LLOY) increased 1.66p to 60.14p and RBS (LON:RBS) advanced 6p to 246.1p.
Consumer goods group Reckitt Benckiser (LON:RB.) ticked up 401p, or 6.7%, to 6367p as it reported higher profits due to strong performances by products such as Nurofen headache tablets and Scholl foot products.
US crude oil started the week trading below US$30 a barrel while Brent crude oscillated around US$33.
Royal Dutch Shell (LON:RDSB) reversed losses to rise 7p to 1533p. BP put on 1.25p to 333.75p as it outlined plans with partner Oman Oil to develop a second phase of the Khazzan natural gas field, taking investment in the project to US$16bn.
Elsewhere, Metal Tiger (LON:MTR) was 0.05p off at 0.9p as the gold explorer looked to extend its joint venture in Extremadura, Spain, by taking a stake in another prospect owned by partner MEN.
Oil explorer Sound Energy (LON:SOU) powered up 0.25p to 17.25p on news that it had started ground works at its Tendrara licence area in Morocco, with all contracts in place for its first well.
Secure payments service provider Eckoh (LON:ECK) has signed a new four-year, multi-million pound global procurement contract with a leading global financial services company. Shares progressed 1.5p to 42p.
Union Jack Oil spurted 9.1% to 0.12p as it started drilling at the conventional Laughton-1 well along the eastern side of the Gainsborough Trough, a proven hydrocarbon province within the East Midlands.
But Magnolia Petroleum (LON:MAGP) was 10.5% off at 0.17p as it said it had brought in £300,000 through a share placing amid volatile oil markets.
Oman copper miner Savannah Resources (LON:SAV) strengthened 2.4% to 2.15p on news of backing from private investment bank Al Marjan in a £1.75mln premium placing.
LONDON OPEN
London shares opened on the up on Monday after Japanese stocks soared amid hopes of extra money-printing.
The FTSE 100 Index gained 93 points to 5801 as the Nikkei closed more than 1,000 points ahead despite weaker GDP figures.
Analysts said the data had boosted expectations that Tokyo would inject further stimulus into the economy.
Back in the UK, HSBC (LON:HSBA) said it had decided to keep its corporate headquarters in London, but hinted that a UK decision to leave the EU could spark a rethink. Shares rose 3.55p to 443.95p.
That was less than rivals such as Barclays (LON:BARC), which lifted 4p to 161.2p, while Lloyds Banking Group (LON:LLOY) increased 0.76p to 59.24p and RBS (LON:RBS) advanced 4.2p to 244.3p.
Consumer goods group Reckitt Benckiser (LON:RB.) ticked up 289p, or 4.8%, to 6255p as it reported higher profits due to strong performances by products such as Nurofen headache tablets and Scholl foot products.
US crude oil has started the week trading below US$30 a barrel while Brent crude oscillated around US$33, already down 1% in early trade.
Royal Dutch Shell (LON:RDSB) fell 15p to 1511p. BP put on 1.15p to 333.65p as it outlined plans with partner Oman Oil to develop a second phase of the Khazzan natural gas field, taking investment in the project to US$16bn.
Elsewhere, Metal Tiger (LON:MTR) was 0.05p off at 0.9p as the gold explorer looked to extend its joint venture in Extremadura, Spain, by taking a stake in another prospect owned by partner MEN.
Oil explorer Sound Energy (LON:SOU) powered up 0.5p to 17.5p on news that it had started ground works at its Tendrara licence area in Morocco, with all contracts in place for its first well.
Secure payments service provider Eckoh (LON:ECK) has signed a new four-year, multi-million pound global procurement contract with a leading global financial services company. Shares progressed 1.5p to 42p.
MARKET PREVIEW
The FTSE 100 is set to open strongly, continuing Friday’s momentum.
The end-of-week rally saw the index of top stocks add 170 points, ending a rollercoaster week on a high.
Spread-betting firms are predicting a 73-point jump in the Footsie later this morning to 5,800.6.
The picture overnight was mixed. Japan’s Nikkei 225 continued to rally, jumping a whopping 7.5% to erase Friday’s losses. The ASX in Australia nudged 1.5% higher.
There was some relief in the region that China’s main equity markets, while lower, managed to stave off a wholesale collapse following a week long break for the lunar new year.
Some pretty awful trade data were accompanied by comments from the People’s Bank of China governor Zhou Xiaochuan that hinted at support for the yuan.
That tended to calm investors’ nerves with a slide in the Shanghai Composite index not quite as bad as it could have been at 0.6%.
“A strong fix for the yuan has eased devaluation concerns leading to relatively small losses in China, a rebound across the rest of Asia and a higher open expected for Europe,” said Jasper Lawler, analyst at CMC Markets.
Back in the UK, there was set to be plenty of interest at the macro level this week, with inflation data on Tuesday, employment numbers the day after and retail sales figures on Friday.
Prime Minister David Cameron’s negotiations with the EU may also conclude this week, which will dictate the direction of the pound.
It is also a busy five days for scheduled corporate news. Bookie Ladbrokes, builders Barratt Developments and Persimmon and gas firm Centrica are all set to post updates.