The FTSE 100 index of Britain's leading shares rose to its highest close since September 2000 on Friday, buoyed by a flurry of US data and supported by mining shares. The index ended the session 55.3 points, or 0.8 percent higher at 6,676.7.
After a US government report showed that the number of new non-farm jobs climbed more than expected in May, reassuring investors about the prospects for consumer spending.
Investors were further boosted by a stronger-than-forecast reading of the Institute for Supply Management's manufacturing index for May and the University of Michigan's consumer sentiment index. "It's been a buoyant...and not least on the back of the upbeat US economic data, which has been universally positive," said Jimmy Yates, a dealer at CMC Markets.
"Rising copper prices are also helping boost sentiment as we move towards the close but for the time being equity markets just keep on going up, even if yield curves are looking flat to higher in the months ahead too."
In commodities, the mining sector featured heavily on the upside, with Vedanta leading the way, up 4 percent, as traders cited climbing metals prices, positive economic sentiment and consolidation hopes. With copper and nickel prices all riding high, other mining shares to support included Antofagasta, Anglo American, Xstrata , BHP Billiton and Lonmin.
"You've got metal prices bouncing well, confidence across the board with the market," one trader said. "There is always talk of a big tie-up in the mining sector," another trader added. Oil eased below $68 a barrel after the restart of a major Nigerian oil pipeline offset an unexpected fall in US crude supplies.
BP rose 0.5 percent, while rival Shell climbed 1.2 percent. In individual stocks, mobile phone giant Vodafone tacked on 3.1 percent as traders said positive sentiment was helping the share price after market talk that AT&T and Telefonica are looking to bid for Deutsche Telekom's T-Mobile USA subsidiary. "There is a rumour that AT&T and Telefonica are looking at DT's US business, and obviously Vodafone has a US business," one trader said. Deutsche Telekom said this week it had no plans to sell its T-Mobile USA subsidiary, dismissing market speculation that had lifted shares in the German telecoms group.
Also on the upside, platinum specialist Johnson Matthey added 2.8 percent on positive broker comment ahead of its preliminary results next Thursday, traders said.
Punch Taverns gained 2.6 percent after Goldman Sachs added the company to its "conviction buy" list and raised its price target to 1,530 pence from 1,280 pence. Property firm Hammerson climbed 1.5 percent as traders cited talk of bid interest from rival British Land, which added 0.9 percent.
Hammerson, which declined to comment, has been dogged by bid speculation and said last month the company was not for sale. Home Retail Group rose 2.4 percent, also helped by renewed bid talk, traders said. "The FTSE has done really well," said Les Ames, a trader at WH Ireland. "(the US data) has added a pleasing aspect to the market. It's been a really good day." On the downside, pharmaceuticals giant GlaxoSmithKline fell 1.4 percent on continued safety concerns over its diabetes drug Avandia and negative broker comment.
The company has lost over 10 percent since May 21, when US researchers said the drug raised the risk of heart attacks. "(Glaxo) can't say or do anything to quell people's fears," Ames added. "The upside with Glaxo is that they are not a one-trick pony, and on that basis they are not a one-drug company."
"It's not an ideal situation... but they have other outlets and they will get this sorted out." Utilities also weighed, with Centrica down 0.9 percent after one of the operators at the firm said an apparent gas leak caused the gas import terminals at Easington in England to shut down on Friday morning. Power station operator Drax shed 1.8 percent and United Utilities also fell.
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