British banks were the strongest risers at the close of trading after a day of rhetoric from European leaders as Britain refused to back treaty changes.
The move by British prime minister David Cameron forced eurozone members and others to announce it would be seek to incorporate new budget and tax measures into the treaty at a later date.
The veto, which has left Britain isolated within Europe, seemed to have little effect on the FTSE 100, which closed 0.83% higher at 5,529.
Josh Raymond, chief market strategist at brokerage City Index, says: “It has been a very choppy trading session after a morning of somewhat mixed trade, with indices swinging between losses and gains, as investors digested the outcome of the new EU accord between at least 23 of the 27 EU members.
“Though it seems that as the day has progressed, investors have started to digest the seeming isolation of the UK better and reacted warmly to the measures announced to bring about a greater fiscal union.”
Banks were the big winners, with Lloyds Banking Group leading, up 5.9% to 26.55p. Barclays was up 5.5% to 190.4p, and Royal Bank of Scotland Group rose 5.1% tp 21.99p.
Miner Antofagasta rose 3% to 1,228p and Prudential increased by 2.9% to 654.5p.
The biggest faller at the close of trading was brewer SABMiller, down 1.6% to 2,164p. Elsewhere, Essar Energy and Weir Group both dropped 1.4% to 222.9p and 1,965p, respectively.
Glaxosmithkline fell by 1.2% to 1,423p, as temporary power provider Aggreko slipped 1.1% to 1,853p.
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