Shares rose in early trade as investors welcomed a cooling in rhetoric between the US and North Korea.
The UK market had fallen sharply at the end of last week as tensions appeared to escalate, with Donald Trump saying the US military was “locked and loaded” to deal with North Korea.
But on Monday, the FTSE 100 index was up 28.35 points at 7,338.31.
Banks saw some of the biggest gains, with Standard Chartered up 3.1% and Royal Bank of Scotland 1.5% higher.
“The markets have opened with an eerie note of calm at the start of a fresh week, as the US-North Korea tensions stalled over the weekend,” said Kathleen Brooks, research director at City Index.
“The fact that we didn’t see an escalation in the rhetoric from either side over the weekend could be enough to trigger a recovery after last week’s risk sell-off, and keep the markets focused on the economic fundamentals.”
In the FTSE 250, shares in Ladbrokes Coral fell 2.3% after Credit Suisse cut its rating on the bookmaker to “underperform” from “neutral”.
On the currency markets, the pound fell 0.1% against the dollar to $1.2998 and was unchanged against the euro at 1.1001 euros.