SHARES headed for a strong end to the week yesterday as traders were cheered by an apparent easing off of global tensions over Ukraine.
The FTSE 100 Index built on gains during the previous session by adding 43.9 points to 6729.2, while German and French markets were also advancing strongly.
It followed overnight gains in Asia as well as a rise on Wall Street.
The improvements were fuelled by a sense that tensions over Ukraine are easing as Russian president Vladimir Putin appeared to tone down his rhetoric over the crisis.
Any signs of improvement in the stand-off would be welcomed by investors after it was blamed for stalling recovery in the eurozone, which has posted zero growth for the second quarter.
Markets have in any case taken the gloomy picture for the 18-nation single currency block in their stride as it is seen as likely to put pressure on the European Central Bank to implement even more stimulus measures.
In the UK, official figures confirmed second quarter gross domestic product growth at 0.8 per cent while year-on-year growth was notched up slightly from 3.1 per cent to 3.2 per cent.
But the mild upward revision is unlikely to have dented expectations that an interest rate hike is now not likely until next year after meagre
wage growth reported earlier this week and a renewed emphasis on pay data set out by the Bank of England's policy makers.
The likely pushing back of the rate rise to 2015 has strengthened equities
because it makes them more attractive investments. Global mining giant BHP Billiton was the biggest riser on the FTSE 100 after it said it wants to spin off some of its assets in a demerger, as it seeks to focus on iron ore, copper, coal and petroleum.
It said in a statement that a "demerger of a selection of assets is our preferred option" which it said the board would consider when it reconvenes next week, when any decisions made will be announced.
Shares rose more than 2 per cent, or 49.2p to 2074.8p. BHP is due to publish full-year results on Tuesday. Meanwhile, takeaway website group Just Eat lost some of the big gains it saw earlier this week when it posted a near sevenfold increase in underlying half-year profits to £15.9 million.
The strong results had seen shares climb by nearly a fifth by the close on Thursday but the stock dropped off in the latest session as traders took profits, falling more than 5 per cent, or 13.9p, to 248.1p.