The FTSE 100 started the week on a positive note, jumping over the 3,900 mark on opening.
At 08:58 GMT, the London index stood at 3,901.45 a rise of 58.60 points or 1.52 per cent.
The financials led the gains as US financial clear-up plans are unveiled - with insurer Old Mutual up 10.73 per cent, while Legal & General rose 8.88 per cent.
Barclays climbed 8.86 per cent to 114.30p and Lloyds Banking Group was up 7.23 per cent.
Thomas Cook was down 3.15 per cent, while Petrofac fell 1.62 per cent and WPP dropped 1.24 per cent.
Overnight the optimism started in Asia, with the Nikkei up 3.39 per cent.
On the currency markets, sterling was up against the euro and dollar to 1.06750 and $1.45530.