Britain's FTSE-100 index recorded its highest close in four months on Monday, extending a recent winning streak to 11 gains out of the last 12 sessions, with fund managers and other financial shares setting the pace.
Among fund managers, often seen as a proxy for the market itself, Man Group added 2.4 percent and Schroders 1.2 percent as investors bet on continuing FTSE gains.
Betting shop chain William Hill moved the other way, falling 2.3 percent after it said growth in winnings had slowed in July and August as customers came out on top in horse races. Midcap rival Stanley Leisure fell 2 percent.
The FTSE-100 closed 13 points higher at 4,563.8, its highest finish since early May and continuing a rally, which has powered the index up by around 6.5 percent over the past three weeks.
The index is now within striking distance of two-year highs just above 4,600, but some in the markets are concerned that the rally might have fragile foundations.
"The jury is still very much out on how durable this global recovery is. I suspect going forward that the amount of cash available for equities is going to be quite limited," said Anais Faraj, global equity analyst at Nomura Securities.
"All I see at the moment is brokers' dealing desks pushing up prices, a bit of short-covering from the hedge funds, but I don't see much real money coming into the market," he added.
Harpreet Kondal, a trader at brokerage Blue Index, said he thought the rally could be vulnerable to short-sellers.
"At the end of the day nothing's changed in the global picture. It's nice to see a feel-good factor, but my money is on this FTSE coming straight back down," he said.
Market volume was light at around 1.5 billion shares with business listless during the afternoon as US markets remained shut for the Labour Day holiday.
Drugs giant AstraZeneca continued its recent strong run on expectations that a US regulatory panel will recommend its new anticoagulant pill Exanta on September 10.
The stock was also supported by fresh positive clinical data on cholesterol-lowering drug Crestor and a bullish note from Deutsche Bank.
Shares in broadcaster ITV gained 1.4 percent, lifted by hopes that results later this week will bring news of more cost savings from its merger.
Among mid-caps, shares in Amlin, which operates in the Lloyds of London insurance market, rose 6.2 percent after posting a half-year pre-tax profit jump of 17.2 percent as premiums rose.
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