A bright start to trading on US markets helped London close well into blue numbers.
FTSE 100 added 87.5 points, 1.46%, to 6,037 as the Dow Jones Industrial Average opened 200 points higher on hopes a rally in the oil price.
Talk of the UK leaving the EU grew after the referendum was announced on Saturday, but this had little effect on London’s blue chips as the market decided the odds are still stacked in favour of staying in.
A deal was struck by Prime Minister David Cameron on Friday night over reforms to Britain’s membership of the European Union.
British businesses today backed the PM’s stay-put stance but Boris Johnson, London’s Mayor, has already come out on the "no" side.
Miners led the index higher with Anglo American (LON:AAL) 10.7% higher to 483.75p and BHP Billiton(LON:BLT) 8.55% to the good at 795p.
BHP is tipped to cut its dividend when it reveals its full year numbers tonight.
HSBC had been among the early fallers on flat results and the revelation of another investigation underway in the US, but pulled back much of the loss and by the close had shed just 0.8% to 445.9p.
J Sainsbury (LON:SBRY) was in the red as it faced losing out on bid target Home Retail (LON:HOME) as Steinhoff made a rival approach at the end of last week.
Sainsbury’s eased 2.26% to 255.2p, while Home Retail jumped 13% to 173.5p, 3p below the price indicated by Steinhoff. Sainsbury’s has suggested a price of 167p and has until 5pm tomorrow to formalise an offer.
US heavyweight Jefferies looked at global pharma today and downgraded UK stalwarts Glaxo (LON:GSK) and AstraZeneca (LON:AZN).
The broker notes it has taken a "Deep-Dive" on valuations from multiple angles in the light of recent market volatility and "earnings maelstrom", where the "sector put on one of the worst guidance updates in recent years".
Gold recovery specialist Goldplat (LON:GDP) eased 5% lower to 4.75p despite net profits for the six months to December of £395,000, a £796,000 turnaround from the loss over the same period in 2014.
Nostra Terra (LON:NTOG) jumped 20% to 0.1p as it agreed to pay $3mln to acquire a 60% stake in the producing oil assets in the Permian basin in the US. The assets comprise 55 active vertical oil wells and have been flowing around 122 barrels of oil per day.
Regency Mines (LON:RGM) was also in demand as it renewed its interest in the Horse Hill oil development near Gatwick.
The deal to buy back in comes after breakthrough well testing results last week, which propelled the shares of the listed Horse Hill stakeholders sharply higher.
A cash and share deal, which Regency says is worth £400,000 consideration, sees £223,730 paid in cash and 54.23mln Regency shares issued to Angus Energy.
Regency shares rose 92% to 0.62p