The London market returned to form today as investors set aside Friday's wobble caused by fears over the economic recovery and sovereign debt.

The FTSE 100 Index, which last week reached its highest point since the end of April, climbed 43.9 points to 5552.4 as the top flight recouped all of the loss seen in the previous session.

There were few fresh developments to upset sentiment as the Tokyo stock market was closed for a public holiday and traders in London saw little in the way of corporate news.

The next major milestone is likely to be the US Federal Reserve's decision on interest rates on Tuesday evening, although central bankers are not expected to announce any change in policy.

One of the biggest moves in the FTSE 100 Index came from oil giant BP after the US coastguard declared the Gulf of Mexico well had been permanently sealed.

Shares rose 6.25p to 409.3p, but the crisis is far from over for the oil giant as it faces the financial impact of clean-up costs, fines and civil lawsuits.

The biggest rise in the FTSE 250 Index came from Brit Insurance after the sponsor of the England cricket team said on Friday evening that it had recommended a takeover proposal from private equity firms Apollo and CVC.