The FTSE 100 index /quotes/comstock/23i!i:ukx (UK:UKX 5,822, +27.15, +0.47%) rose 0.3% to 5,811.87 as other European markets also rose, spurred by gains for banks and technology stocks. Also see Europe Markets.
The index also held on to its gains after the Bank of England, as expected, left its key interest rate unchanged at a record-low 0.5%, and also maintained its asset-purchase program at 200 billion pounds ($316 billion).
Foreign-exchange markets were also largely unmoved by the decision, with the pound continuing to trade down around 0.4% against the dollar at $1.57379.
Banks and insurers were almost all higher in London.
Royal Bank of Scotland Group /quotes/comstock/23s!a:rbs (UK:RBS 42.74, +1.76, +4.29%) /quotes/comstock/13*!rbs/quotes/nls/rbs (RBS 13.45, +0.38, +2.91%) rose 3% and Prudential PLC /quotes/comstock/23s!a:pru (UK:PRU 653.50, +19.00, +2.99%) /quotes/comstock/13*!puk/quotes/nls/puk (PUK 20.68, +0.52, +2.58%) climbed 2.8%.
The main exception was emerging-markets-focused lender Standard Chartered /quotes/comstock/23s!a:stan (UK:STAN 1,803, -75.00, -3.99%) , which dropped 3.7%.
The bank said it’s on track for another year of record revenue and profit, but also noted that net interest margin has dipped slightly and cost growth is likely to outpace revenue growth.
“This is essentially in line with expectations, but contains no clear positive triggers,” said Simon Willis, an analyst at Daniel Stewart & Co.
Some commodity-related stocks also rose as metal and oil prices edged higher.
Shares of miner Lonmin PLC /quotes/comstock/23s!a:lmi (UK:LMI 1,853, +49.00, +2.72%) climbed 2.2% and BHP Billiton PLC /quotes/comstock/23s!a:blt (UK:BLT 2,466, +38.00, +1.57%) /quotes/comstock/13*!bhp/quotes/nls/bhp (BHP 89.04, +1.24, +1.41%) rose 1.4%.
BG Group PLC /quotes/comstock/23s!a:bg. (UK:BG. 1,331, +43.00, +3.34%) gained 2.5% after an update on its offshore operations in Brazil, in which the company said it expects “very low” technical costs during the initial phase of production.
Outside the main index, shares in CD-and-DVD retailer HMV Group PLC /quotes/comstock/23s!a:hmv (UK:HMV 35.50, -8.25, -18.86%) slumped 23% after the group reported a bigger-than-expected loss, halved its dividend payout and reported a 16% drop in comparable sales.
The retailer also warned that severe weather in the U.K. over the last two weeks has “significantly affected consumer footfall,” going into the crucial Christmas trading period.
Other retail stocks were also mostly lower.
Marks & Spencer Group /quotes/comstock/23s!a:mks (UK:MKS 377.40, -7.80, -2.02%) fell 1.4% and Morrison Supermarkets PLC /quotes/comstock/23s!a:mrw (UK:MRW 272.40, -2.30, -0.84%) slipped 0.7%.
Simon Kennedy is the City correspondent for MarketWatch in London.
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