Some analysts believe the FTSE will rise further this week
The FTSE 100 has closed at its highest level for more than a year, boosted by stronger commodity prices and optimism about the US corporate earnings season.
London's leading share index rose 48.3 points to 5,210.17 - its highest close since September 2008.
Insurer Old Mutual was the top gainer on the index, rising 4.6%, as traders re-evaluated its stock.
Rising metal prices pushed up miners, while the price of oil rose almost 2%, boosting energy companies.
Oil giants BP rose 1.8% and Royal Dutch Shell gained 1.6%.
Some analysts believe the FTSE will continue to rise throughout the week.
"The next FTSE target traders are eyeing in the short term is the 5,350 high hit in September last year and the way sentiment is going it would not be a surprise to see that hit this week," said David Jones, chief market strategist at IG Index.
Dutch electronics giant Philips also gave markets a boost, when it reported better-than-expected quarterly profits.
Markets elsewhere in Europe rose, with France's Cac 40 index gaining 46.19 points to close at 3,845.8, and Germany's Dax climbing 71.35 points to 5,783.23.
On Wall Street, the Dow Jones Industrial Average closed up 20.86 points at 9,885.8. Trading had been light as much of the US observes the Columbus Day holiday.