FTSE led up by HSBC

On the downside, mining stocks were under pressure as commodity prices retreated after rising in the previous session. Anglo American , Antofagasta , Xstrata and Eurasian Natural Resources slipped 1.7 to 2.3 percent.

Among individual losers, Vodafone was down 3.1 percent after reporting in-line results and an extension to its cost-cutting programme to 2 billion pounds, as analysts warned of underlying weakness and tough competition in emerging markets.

Economic data suggested Britain could be moving steadily out of recession, giving a further boost to positive sentiment for equities.

House prices in England and Wales rose last month at their strongest rate in almost three years, buoyed by tight supply and record low interest rates, the Royal Institution of Chartered Surveyors said.

Meanwhile, British retail sales rose last month at their fastest annual pace since April to notch up their best October showing for seven years, data from the British Retail Consortium showed.