London's main stock index was higher on Thursday, notching up gains for a third straight session, propelled by upbeat earnings reports from heavyweights Shell and Diageo and the US Federal Reserve's dovish stance on future interest rate hikes.
The FTSE 100 was up 0.6 percent at 0949 GMT after hitting its highest level in nearly three weeks, while the midcap index rose 0.3 percent to its highest since November.
The blue chips were on track for their best monthly performance since April.
The upbeat mood across European bourses followed Asia, where shares bounced to a four-month high after the Federal Reserve pledged it will be patient with further interest rate hikes, signalling a potential end to its tightening cycle amid signs of slowing global growth.
"We're actually quite encouraged by this new tone in Fed language, as we had been arguing for the advisability of a pause to rate hikes even before 2018's dreadful fourth quarter for markets," Rick Rieder, BlackRock's Chief Investment Officer of Global Fixed Income, said.
But at home, uncertainties mounted for Britain with the European Union's chief Brexit negotiator saying that time was too short to find an alternative to the Irish border arrangement agreed in their divorce deal, as London wants.
Topping the FTSE 100, Diageo, the world's largest spirits company, added 4 percent and was course for its biggest one-day rise in one and a half years after it reported higher half-year sales and announced a share buyback.
Oil major Shell, the highest valued FTSE 100 firm, was close behind after it reported a forecast-beating 36-percent surge in 2018 profits as cost savings kicked in.
That helped oil stocks climb 2.8 percent, on course for their best day in three months.
Water utilities United Utilities and Severn Trent advanced 2.8 percent and 2.5 percent respectively after regulator Ofwat approved their five-year business plans.
Shares in telecoms giant BT and Unilever turned sour after the companies reported results.
"Commentary on uncertainties, including Brexit, leave open the possibility of a more challenging FY19/20," wrote Jefferies analysts about BT.
"In 2019 we expect market conditions to remain challenging," Unilever's new chief executive Alan Jope said.
Asset manager Standard Life Aberdeen tumbled 4.3 percent after a downgrade by Morgan Stanley to "equal-weight".
RPC rose 4 percent, among top gainers on the midcap index, after US-based Berry Global said it was considering a cash offer for the packaging products maker following Apollo Global Management's 3.3 billion pounds ($4.33 billion) deal.
"What a difference a month makes, from the doom and gloom of December, January looks set to see some decent gains as investors look at the latest earnings numbers," said CMC Markets analyst Michael Hewson.
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