The U.K.'s leading shares indices hit their highest closing levels since August 1 on Thursday, led on the top tier by the banking sector on the mid-cap market by retailers.
The FTSE 100 index closed up 39 points or 0.7% at 5,741, while the FTSE 250 index added 147 points or 1.4% to 10,808.
Banks were higher as investors were encouraged to engage the financials sector amid Greek hopes and solid earnings from U.S. peers. Reports suggested Thursday that Greece is on the cusp of an important bond-swap deal with private creditors that could help the debt-strcken nation avoid default. Meanwhile, in the States, Bank of America (BAC), Goldman Sachs (GS) and Morgan Stanley (MS) all reported results today and yesterday that seemed to please investors.
In London, Barclays (BARC), Lloyds Banking Group (LLOY) and Royal Bank of Scotland (RBS) were the top three gainers, up 10.1%, 9.1% and 8.9%, respectively. Broader financials also benefitted from the improved sentiment, with Schroder (SDR) adding 5.3% and Aviva (AV.) 5.2% higher.
Tesco (TSCO) was also in demand, 1.9% firmer, thanks to news billionaire investor Warren Buffett's investment vehicle Berkshire Hathaway has raised its stake to more than 5% following the retailer's share-price slump earlier in the week following its earnings update.
On the downside, Essar Energy (ESSR) was back in the red, dropping 11.9% as investors refused to be cheered by news that it will appeal Tuesday's ruling by a Supreme Court that it can no longer avoid paying over $1 billion in taxes.