Gains in miners, buoyed by firmer metal prices and banks, supported by improving risk appetite, lifted Britain's top share index 0.5 percent to a one-month high early on Tuesday.
By 0902 GMT the FTSE 100 was 28.68 points higher at 5,380.75, touching its highest since Jan. 21, after snapping a five-session winning run to close down 0.1 percent on Monday.
"We are not far away from where we started the year which is good given the headwinds the markets have faced," said Richard Hunter, head of equities at Hargreaves Lansdown.
The blue-chip index is 0.4 percent below its level at the start of the year. Global stock markets have taken a hit recently as concerns about debt problems in Greece and worries over other euro zone countries spooked investors.
"Some positive factors have been swept under the carpet which are now starting to be recognised; 75 percent of U.S. companies (earnings) beat expectations," Hunter said.
Miners were the biggest positive for the index, gaining ground as copper and other base metal prices rose.
Rio Tinto, Xstrata, Lonmin, Anglo American, Kazakhmys and BHP Billiton added 1.5-2.4 percent.
But investors in British and global equities held off from taking big positions ahead of a congressional testimony by Federal Reserve Chairman Ben Bernanke later this week.
After the surprise increase last week in the rate the Fed charges banks for emergency loans, the market focus is on how Bernanke explains the move in testimony in the House and the Senate on Wednesday and Thursday.
Banks were positive, benefiting from a slightly improved risk appetite and awaiting further results in the sector.
Barclays, HSBC, Standard Chartered and Royal Bank of Scotland and Lloyds Banking Group gained 0.4-1.6 percent. RBS and Lloyds post full-year results on Thursday and Friday, respectively.
Energy stocks were also higher as crude held firm above $80 a barrel. BG Group, Royal Dutch Shell and Tullow Oil added 0.2-0.8 percent.
Wolseley was the standout gainer on the blue-chip index, jumping 9 percent and touching its highest level in over a year, after the building materials supplier issued a surprise, upbeat trading statement.
Among a limited number of stocks in retreat, Reckitt Benckiser fell 0.4 percent after Britain's Office of Fair Trade said the consumer goods group may be abusing its dominant market position in the supply of heartburn medicines.
Reckitt was also knocked by a downgrade to 'hold' from 'buy' on valuation grounds, with Panmure Gordon saying it did not see the OFT news as being particularly material to the investment case.
The Governor of the Bank of England Mervyn King and colleagues will be giving evidence on British growth and inflation prospects to the House of Commons Treasury Select Committee from 0915 GMT.
With no significant domestic data due on Tuesday, investors will look across the Atlantic for further clues as to the pace of economic recovery. The U.S. Case-Shiller home price index is due at 1400 GMT, while U.S. consumer confidence figures will be released at 1500 GMT.
