Rising mining stocks, powered by surging copper prices, lifted Britain's top share index to a five-week high early on Monday, but gains were capped by HSBC after the bank's results missed expectations.
At 0915 GMT, the FTSE 100 was up 36.67 points, or 0.7 percent to 5,391.09 points, having hit a five-week high earlier of 5,420.83. The blue chip index closed 76.30 points, or 1.5 percent higher on Friday.
Miners gave the biggest lift to the index as copper reached its highest level in more than five weeks after a massive earthquake in top producer Chile sparked supply worries.
Rio Tinto, Xstrata, Lonmin, Anglo American, Kazakhmys and BHP Billiton added 1.3-4 percent.
Signs that Athens might be nearing a deal with European Union governments to ease the Greek debt crisis, a factor which has been a major depressant for stocks, also supported sentiment.
"Mining stocks are up on the back of the earthquake in Chile, and it seems as though there's a move towards a solution in the Greek situation, so there's a slightly more optimistic mood all round," said Richard Hunter, head of equities at Hargreaves Lansdown.
Energy stocks also rose, supported by crude's break above $80 per barrel.
BG Group, BP, Royal Dutch Shell, Tullow Oil and Cairn Energy added 1.3-1.6 percent.
HSBC HURTS
Banks, however, were the biggest drag on the index, turning negative after results from HSBC showed loan impairments outside the U.S. were higher.
Shares in HSBC fell 2.4 percent, while Standard Chartered, Royal Bank of Scotland and Lloyds Banking Group fell 1-1.4 percent. Barclays bucked the trend, gaining 1.4 percent.
Aviva was the biggest blue chip faller, down 3.3 percent, as takeover hopes for the insurer faded on news mooted joint predator Prudential is close to a big acquisition in Asia, traders said.
Prudential shares were temporarily suspended, pending a further announcement, after it confirmed after the group confirms it is in talks to buy the Asian arm of American International Group.
Legal & General, also a long-perceived takeover target among the insurers, fell 2.1 percent.
The main domestic focus this week will be on the latest Bank of England MPC meeting, although no changes are expected to British monetary policy when the BoE's decision is made public at midday on Thursday.
British house prices were 0.4 percent higher than a year ago in February, marking the first annual rise since March 2008, a Hometrack survey released overnight showed on Monday.
February's UK CIPS manufacturing survey, and Bank of England consumer credit and mortgage lending numbers for January are also due for release on Monday morning.
Investors will also have a batch of U.S. data to digest in the afternoon, with January personal income and consumption numbers due at 1330 GMT, followed by the February ISM and January construction spending numbers at 1500 GMT. But most eyes will be directed ahead towards Friday's U.S. jobs report.
