The FTSE 100 ended the day up 1.32 per cent today to stand at 5,601.20.
UK stocks rose to their highest point this month after US Commerce Department data pointed to the US economy beating previous growth estimates.
Sainsbury was up 7.92 per cent, while builders merchant Wolseley was up 5.87 per cent benefiting directly from positive US data.
Barclays was up 5.83 per cent, Royal&SunAlliance rose 5.69 per cent and Friends Provident gained 5.38 per cent as financials saw renewed confidence.
Heading the falls was miner Kazakhmys which recorded profit drops on lower copper output and dropped 2.54 per cent.
Severn Trent dropped 2.14 per cent, Eurasian fell 2.11 per cent, Cairn Energy was down 1.86 per cent and Petrofac fell 1.35 per cent in a bad day for commodity/energy stocks.
Outside the FTSE 100, property performed well with Savills up 17.01 per cent, Taylor Wimpey rising 10.36 per cent, Persimmon gaining 7.81 per cent and Bellway climbing 7.74 per cent.
Anthony Grech, market strategist at spreadbetting firm IG Index, said: "The UK market was strong from the open today, with a good start by the banking sector helping to keep the mood upbeat.
"But it was the US economic figures that came out at lunch time that really put a rocket under prices, propelling the blue chip index to levels not seen for the best part of two months. The GDP figures out of the USA were better than expected, helping to put fears of recession on the back burner for at least the short term and this positive sentiment spilled over into London trading."
He added: "Today's surge has offered the first glimmers of hope to those with a slightly longer term outlook that the recovery that started back in the middle of July could still have some legs left and that markets may be already factoring in that the worst is behind us."