The bullish mood continued on London’s blue chip index amid hopes US politicians will reach a deal on the government’s debt limit.
The FTSE 100 Index climbed 26.6 points to close at 6181 - hitting its highest level since May 2008.
Some heavyweight stocks were on the front foot, with pharmaceuticals giant GlaxoSmithKline ahead 2% or 29p to 1405p and insurer Aviva 8.7p stronger at 374.9p.
The mood of optimism reflected hopes for a short-term bill that would give the US another three months to deal with its debt ceiling.
Congress must agree to raise the limit on how much debt the US can have by the end of February otherwise the country risks default and could be slapped with damaging credit downgrades. Wall Street markets closed higher on Friday but were shut today for a public holiday.
The pound was down against the US dollar and the euro at 1.58 and 1.18 respectively, in anticipation of a raft of poor UK data this week.
Experts predict public finances will continue to deteriorate on Tuesday and GDP figures on Friday are expected to show the economy contracted in the final three months of 2012.
The biggest FTSE 100 risers were Admiral up 57p to 1211p, Aviva ahead 8.7p to 374.9p, Weir Group 44p higher at 1950p and Royal Bank of Scotland up 8.1p to 366.9p.
The biggest FTSE 100 fallers were Pearson down 36p to 1202p, Meggitt off 7.8p to 429.4p, Kingfisher 4p lower at 268.9p and Burberry down 19p to 1367p.