The index reversed earlier losses, aided by pharmaceuticals as an election in the US state of Massachusetts for a US Senate seat put President Barack Obama's healthcare reforms in jeopardy. AstraZeneca, GlaxoSmithKline, Sanofi-Aventis and Novartis added 0.1 to 1.9 percent.
"There is a possibility that the Democrat candidate in Massachusetts might get booted into touch. If that were the case President Obama may have a problem with his healthcare bill which takes temporary shackles off the cost of drugs," said David Buik, partner at BGC Partners. Cadbury rose 3.6 percent, hitting a record high after its board bowed to an improved 11.9 billion pounds ($19.6 billion) offer from Kraft Foods.
Earlier, Citigroup reported a fourth-quarter loss which met analysts' expectations as the third-largest US bank took charges linked to repaying government bailout funds. IBM is set to announce results after the US market close, while Bank of America and Morgan Stanley's numbers are due on Wednesday. Goldman Sachs and Google are due to report earnings on Thursday. Analysts said the next batch of results from US companies would provide fresh direction for equities.
"This is going to be an interesting week as we will get a few more bank results as well as some tech results and markets will take their cue from that," said Mike Lenhoff, chief strategist at Brewin Dolphin. The index has rebounded 66 percent since hitting a low in March and is up 2.2 percent so far this month.
Also on the gainers list was Burberry, which surged 8.3 percent, as the British luxury goods group smashed third-quarter sales forecasts and predicted annual profit towards the top-end of market expectations. Across Europe, Britain's FTSE 100 index, Germany's DAX and France's CAC 40 rose 0.3 to 1 percent. On the downside, beverage companies were weak, led by a 2.3 percent fall in SABMiller after the firm missed forecasts and reported flat third-quarter underlying beer volumes.
Within the sector, Heineken, AB InBev, Carlsberg and Pernod Rocard shed 0.1 to 0.5 percent. Alstom, the French maker of power equipment and high-speed trains, fell 2.5 percent after it cautioned that the timing for future bookings remained uncertain, but said order intake improved in its fiscal third quarter. In macroeconomics, German analyst and investor sentiment fell more than expected in January to its lowest level since July, according to a closely-watched survey by the ZEW economic think tank.