The blue-chip FTSE 100 ended up 103 points, or 1.5%, at 6,813 after a boost in oil prices sent commodities sector stocks higher on Monday.
A rise in the price of Brent Crude Oil, up 2% to $46.84 a barrel, gave a leg up to Glencore (LON:GLEN), up 6.2% at 196.5p and the top gainer followed by Anglo-American (LON:AAL), up 5.7% at 860.9p, while BHP Billiton (LON:BLT) was the fifth gainer of 3.7% at 1022.5p.
Gains by the mid-cap FTSE 250 index were more muted, up 0.2% to 17,889, but at least the gainers were dominated by mining and other commodities stocks. The top riser was the steel to vanadium mining company Evraz plc (LON:EVR) up 6.7% at 147.1p.
Next was miner Centamin (LON:CEY) up 6.1% to 142.9p and Vedanta Resources (LON:VED) up 5.4% to 522p and Acacia Mining (LON:ACA) up 3.2% to 488.2p.
On the downside, the outsourcing firm Mitie (LON:MTO) saw its shares crash by 29% to 191.3p after a profit warning. The company said its full-year operating profits were expected to be "materially below" expectations.
Among smaller caps, the FTSE AIM 100 Index was up 0.5% at 3875 and the FTSE AIM All-Share Index advanced 0.4% to 811.
Among FTSE Small Cap stocks the notable riser was walkie-talkie maker Sepura Plc (LON:SEPU), which surged over 25.8% to 19.5p after a broker reiterated its belief that the company was a takeover target.
Elsewhere, Sunrise Resources Plc (LON:SRES) shone almost 16% higher as it said results from latest drilling at the Bay State silver project in Nevada is now completed and results from two holes are expected in six weeks alongside a business overview. It closed up 5.5% at 0.23p.
Chariot Oil & Gas plc (LON:CHAR) continued its roll, with shares up almost 26% before closing up 8.2% at 7.3p.
On the FTSE AIM 100 the top riser was Pantheon Resources (LON:PANR) up 11.3% to 113p.
But markets didn't get ahead of themselves, knowing that while chances of a US rate hike on Wednesday are remote they are not off the radar as US data has been mixed in recent months.
LUNCH
FTSE 100 was still striding ahead at lunch, with miners taking the lead and US futures pointing to a positive start on Wall Street, despite the weekend bomb in New York.
FTSE 100 is over 94 points ahead at the time of writing, at 6,805, while small caps are also making gains. FTSE AIM 100 is up 0.3% to 3,867, while FTSE AIM All share is 0.25% ahead at 810.000.
European shares are casting the worries aside from last week, and the perceived inaction on stimulus by the ECB, with the German Dax up 0.83% and the French CAC 40 1.5% ahead - at 4,397.
Crude prices were rebounding with a barrel of West Texas Intermediate - the US benchmark, up 1.49% to US$43.67 a barrel but the European standard Brent Crude is currently well below - down over 2% at US$45.86.
A notable riser was walkie-talkie maker Sepura Plc (LON:SEPU), which surged over 11% to 17.25p after a broker reiterated its belief that the company was a takeover target.
Liberum Capital said the company’s warning last week of a potential bank covenant breach had put it in play.
The broker reckons Sepura is attractive due to its presence in terrestrial trunked radio (TETRA) - a professional mobile radio and two-way transceiver specification – globally and in North America in particular.
Broker WH Ireland was also in play today with shares up over 33% to 135p making it the top London riser.
Earlier the firm noted the weekend media speculation, saying it was aware that Kuwaiti European Holdings Group (KEHG) was considering acquiring a shareholding.
Elsewhere, Sunrise Resources Plc (LON:SRES) shone almost 16% higher as it said results from latest drilling at the Bay State silver project in Nevada is now completed and results from two holes are expected in six weeks alongside a business overview.
Chariot Oil & Gas plc (LON:CHAR) continues its roll, with shares up almost 26% to 8.50p.
Last week, in its interims, the Atlantic-margins explorer told investors of its drilling plans and said it had more than enough cash to fulfil its licence commitments.
Larry Bottomley, chief executive, told investors: "Our technical work over the last few years has laid the foundations of a strong company with a portfolio of assets capable of delivering transformational growth.
"The next phase across our portfolio is to create value with the drill bit and our aim is to partner with a target of drilling three wells within the next two years."
As at June 30, the firm had US$29mln and no debt.
Risers and fallers: Stride Gaming, Sepura, Mitie group https://t.co/KP8bvUCvga via @proactive_uk
— Giles Gwinnett (@Gile74) 19 September 2016
OPEN
Britain's blue chips were powering higher early doors as traders eye Central Bank meetings later midweek.
On FTSE100, miners were the big gainers, with BHP Billiton (LON:BLT), up 3.64%, while small cap shares were also making gains.
FTSE 100 is up over 83, or 1.24% at the time of writing at 6,793, while FTSE 250 is also 0.46% higher at 19,933.
FTSE AIM 100 is up 0.38% to 3,871, while the FTSE AIM All share added 0.3% to stand at 810.450. The price of crude is also making gains.
The US Fed has a policy meeting on Wednesday as does the Bank of Japan. Expectations stateside is that rates will not be moved higher as things stand at the moment, while in Japan, investors are looking for a cut to interest and further stimulus measures.
Stock broker W.H. Ireland Group plc (LON:WHI) saw shares lift almost 20% in early deals after news that a Middle East company was eyeing a stake in it.
The broker noted weekend media speculation and said it was aware that Kuwaiti European Holdings Group (KEHG) was considering acquiring a shareholding.
In small caps, also higher was drug developer Redx Pharma Plc (LON:REDX),which said its flagship cancer treatment the Porcupine inhibitor has shown promise as part of a combination therapy to treat cancer.
Redx’s Porcupine inhibitor seemed to improve the immune system response of some cancer patients when used in combination with an existing immunotherapy, anti-programmed cell death-1 (anti-PD-1).
Also flying high was online bingo group Stride Gaming PLC (LON:STR), which forecast annual results above expectations after strong trading.
Shares jumped up 12.99% to stand at 274p.
Stride expects net gaming revenue to be not less than £47mln against £27.8mln a year ago and pre-tax earnings before interest, depreciation and amortisation of not less than £12.3mln versus £7.3mln last time.
Also higher was Hummingbird Resources (LON:HUMM), up over 12% to 25.25p and Tlou Energy plc (LON:TLOU), which added 13.25% to 11.75p.
A notable riser was Clontarf Energy plc (LON:CLON), which raced up almost 40% to stand at 0.80p as it revealed it has been offered revised Tano Basin acreage in Ghana, which it has accepted in principle.
Negotiations to formalise a revised petroleum agreement between the firm and officials continues.
Opening snapshot at 8.15am
The FTSE 100 opened 63 points higher at 6,773.
The top winner was Anglo American (LON:AAL) up more than 3% to 841p.
London Stock Exchange Group (LON:LSE) was the biggest loser, down almost 1% to 2,713p.
News
Rising prices to hit butter margins at Dairy Crest
Tasty sales help to narrow losses at DP Poland
Stride Gaming hits results jackpot
Preview at 6.59am
FTSE 100 has an oily sheen, but it's all about central bankers this week
The FTSE 100 is expected to bounce back from its worst weekly performance post-Brexit to open strongly.
The index of blue chip shares will rise 67 points to 6,777.28, buoyed by the rising price of crude.
This followed comments by Venezuelan President Nicolas Maduro suggesting an imminent deal between OPEC and non-OPEC members aimed at stabilising production. Brent crude rose 1.7% to US$46.55.
The focus of the week, however, will on second-guessing and then reacting to the central bankers of the US and Japan.
A slew of negative economic data is likely to encourage Janet Yellen and her US Federal Reserve colleagues to keep their powder dry on a rate hike when they meet on Wednesday.
By contrast it’s anyone’s guess just what the BoJ will do – though the only certainty is it won’t raise rates. For it is all about stimulating a lacklustre economy.
"Our best guess - and it is frankly little more than that - is that the BoJ will elect to take measures that underpin the recent steepening of the yield curve," Ray Attrill, of National Australia Bank, told CNBC.
The crude oil rise underpinned helped sentiment in Asia with Hong Kong and Shanghai up 1.1% and 0.6% respectively. Trading on the ASX had to be halted because of a technical glitch, while Japan was closed for a public holiday.
Back here in the UK and looks set to be a quiet week for scheduled corporate news.
Retailers Kingfisher and French Connection report on Tuesday, with over-55s group Saga and publican Mitchells and Butler publishing results on Wednesday and Thursday respectively.
*Gold trading US$12 higher at US$1,318.20.
Weekend Press
The fund Manager Premier Asset Management is drawing up plans to list on the London stock market nearly a decade after it was taken private – Sunday Times.
Buyout firm 3i is set to return a large slug of cash to investors as it prepares to sell off an environmental and food testing business for £100 million – Sunday Times.
Monday’s Headlines
Compare The Market Owner BGL lines up banks for £2bn IPO. The stock market listing could come in the first half of next year – FT.
Ukraine’s creditors have warned that a surprise decision by the government to impose direct control over the war-torn country’s prized natural gas transportation company could jeopardise hundreds of millions of dollars of additional financing linked to a $17.5bn International Monetary Fund bailout package – FT.
Banks are waking up to an imminent funding crisis as new rules designed to make money-market funds safer threaten to cause a dollar cash crunch among some of the world’s largest lenders – Times.
Britain will forgo nearly 27,000 jobs by the end of the decade if it does not press ahead with the HS2 high-speed rail project between London and Birmingham, a report has claimed – Times.
Kingfisher, the retailer behind B&Q and ScrewFix, is seeking a giant new London headquarters, a deal which would be a fillip for the commercial property market after the Brexit vote – Telegraph.
The head of Germany’s central bank has warned that London’s position as a financial centre would be dealt a severe blow if the UK left the single market because banks would be denied the right to operate across the 27 remaining members of the EU – Guardian.