The FTSE 100 began the week on the front foot on Monday, but the pound came under late selling pressure as the Chancellor delivered his Budget.
London’s top flight rose 86.76 points, or 1.25%, to close at 7,026.32.
The FTSE 100 was buoyed by HSBC, which was riding high on a solid set of third-quarter results.
The banking giant booked a 28% increase in profit before tax to 5.9 billion US dollars (£4.5 billion) in the three months to September 30, reflecting strong revenue growth and lower operating expenses.
The results, which beat expectations, also showed that on an adjusted basis, pre-tax profit jumped 16% to 6.2 billion US dollars (£4.8 billion).
Shares closed up 28.8p at 633.8p.
At the other end of the index, Just Eat shares were sent south by a highly critical research note issued by Peel Hunt.
In it, Just Eat was downgraded from sell to hold and had its target price cut from 950p to 520p amid fears over a mooted takeover of Deliveroo by Uber. Peel Hunt argued that Just Eat would come under intense pressure were the deal to go ahead.
Just Eat shares closed down 7.4p at 594.4p.
Sterling, meanwhile, was in the red, despite Chancellor Philip Hammond saying that the Office for Budget Responsibility has raised its growth forecast for the British economy and lowered the forecast for the deficit.
The pound was down 0.2% versus the US dollar at 1.280 and down 0.01% against the euro at 1.124.
In Europe, Germany’s DAX was up 1.2% while France’s CAC was 0.44% higher.
A barrel of Brent Crude was trading at 77.4 US dollars, down 0.24%.