THE London market has jumped for the second session in a row as lender HSBC announced it will keep its base in the UK after a lengthy review.
Europe's biggest bank said the decision, which came after an April review, was "the best outcome for our customers and shareholders", while the Treasury also welcomed the move.
The FTSE 100 Index soared 116.7 points to 5824.3, building on strong overnight trading in Asia and a 3 per cent rise on the London market on Friday.
Germany's Dax and the Cac 40 in France were both up by around 3 per cent.
However, global markets remain volatile this year with investors troubled by falling oil prices, sliding bank stocks last week and longer term prospects of a slowdown in world growth. Top-flight shares in London have fallen by 7 per cent this year.
The pound was a cent up against the euro at just over 1.29, after European Central Bank head Mario Draghi said some Eurozone banks "face challenges" but that overall the system is more resilient since the 2008 financial crisis.
However, European bank stocks are down by around a quarter since the start of the year.
Sterling was a cent down against the US dollar at just over 1.44.
In stocks, HSBC lifted 6p to 446.4p after chief executive Stuart Gulliver said: "Having our headquarters in the UK and our significant business in Asia Pacific delivers the best of both worlds to our stakeholders."
Banks rose across the board as the man behind the UK's retail banking reforms, Sir John Vickers, said his recommendations have been watered down.
Sir John, head of the 2011 Independent Commission on Banking, criticised the Bank of England's plans to build an extra buffer of capital for not being strong enough.
Barclays lifted more than 2 per cent, or 3.6p, to 160.8p, Lloyds Banking Group was up 1.4p to 59.8p, and Royal Bank of Scotland was 6.2p higher at 246.3p.
Nurofen owner Reckitt Benckiser was the biggest riser in the top flight after it said like-for-like sales rose by 6 per cent in the year to the end of December, pushing pre-tax profits up by 4 per cent to £2.2 billion.
Chief executive Rakesh Kapoor said growth had been achieved despite a year of "mixed market conditions", adding that he expected general market conditions will remain "tough" in 2016.
Shares rose more than 6 per cent, or 405p, to 6371p.
Elsewhere, investment firm Alliance Trust has announced its under-pressure boss Katherine Garrett-Cox will step down.
Ms Garrett-Cox – who has been in a public clash with the firm's activist investors Elliott Advisers – will leave her position as chief executive of Alliance Trust Investments on March 11.
Her departure comes after she left the FTSE 250 group's board in October following a high-profile dispute with the American hedge fund Elliott Advisors, which had criticised the company's performance.
Shares lifted 2 per cent, or 9.1p, to 465.8p.
The biggest risers in the FTSE 100 Index were Reckitt Benckiser up 405p at 6371p, Standard Chartered up 24.1p at 453.1p, International Airlines Group up 24.7p at 504.5p, and Anglo American up 19.1p at 393.1p
The biggest fallers were Fresnillo down 23.5p at 873.5p, Randgold Resources down 125p at 6030p, Berkeley Group down 20p at 3161p, and BHP Billiton down 3p at 693.6p.
