The FTSE 100 rallied 0.4% to 6,857 following gains in Asia and the US overnight and ahead of the US Federal Reserve's meeting on interest rates today.
Barclays led the blue-chip risers, trading 3.1% higher at 171.7p.
Other financial and insurer stocks were in positive territory, including Legal & General (LGEN), Aviva (AV.) and Standard Life (SL.).
West Texas Intermediate (WTI) crude oil jumped 2.1% to $45 and Brent crude oil gained 2% to $46.79 per barrel, respectively.
MAIN NEWS OF THE DAY
Royal Bank of Scotland (RBS) nudged 0.3% lower to 183.1p after Santander pulled out of talks to buy 315 branches on Tuesday. RBS was asked to spin off the branches by the EU in response to its rescue by taxpayers in 2008.
Public sector net borrowing, excluding public sector banks, fell by £4.9 billion to £33.48billion from April to August 2016, compared with the same period in 2015, according to the Office for National Statistics.
MID CAP RISERS AND FALLERS
Over 50s insurance provider SAGA (SAGA) made minimal gains despite raising its first half pre-tax profit from continuing operations to £109.9 million and hiking its interim dividend.
SMALL CAP RISERS AND FALLERS
Wine specialist Majestic Wine (WINE) soured 24.3% to 327.8p after warning investors about April 2017 profits, which it blamed on issues in its Commercial and Naked Wines USA businesses. The firm confirmed it will pay a dividend in the current financial year.
Women's clothing retailer Bonmarche (BON) crashed 21.3% to 90.5p on a disappointing trading update, which reported difficult trading conditions. It reduced profit expectations for the second half as a result of unseasonably hot weather in September.
Broker Cenkos Securities (CNKS) declined 15.2% to 97.5p following a 91% plunge in first half profits, as market volatility and the Brexit vote undermined companies willingness to raise cash.
The market responded warmly to online casino operator 32Red's (TTR) new deal with ITV to offer games based on I'm A Celebrity... Get Me Out Of Here and Saturday Night Takeaway, It also reported a 23-fold year-on-year increase in interim pre-tax profit to £2.5 million.
IronRidge Resources (IRR) said it will proceed with an investment of up to $3.5 million in Tekton Minerals to obtain a 58% stake in the company, pushing its share price 4.7% higher to 11.1p.
Interserve's (IRV) construction joint venture Khansaheb won an £81 million contract by Majid Al Futtaim (MAF), to expand and upgrade the City Centre Ajman mall in the UAE.
Technology group Servelec (SERV) nudged higher on first-half results, which revealed its confidence in achieving revised market expectations for the year, Servelec said it is on track to return to growth next year.
Physiomics (PYC) raised £555,000 via a placing and decided not to proceed with the acquisition of BioMoti as management wanted to focus on organic revenue growth and profitability.