The FTSE 100 rallied 2% this week, stopping just short of 6,000 on Friday.
Resource stocks got a boost early in the week after precious and base metal prices rose in response to an increase in HSBC's China purchasing managers index (PMI).
Oil and gas companies were supported by an increase in oil prices triggered by unrest in Egypt.
The US data released over the past five days was mostly positive.
On Monday, the Commerce Department today reported that consumer spending in the US rose 0.7% in December, while income increased 0.4% and savings decreased by US$20 billion.
On Thursday, the Labor Department said that initial jobless claims in the US dropped 42,000.
It was also reported that US factory orders climbed 0.2% in December and the Institute of Supply Management non-manufacturing index reached the highest level ever at 59.4% in January with the ISM reporting that business activity in the service sector expanded at the fastest pace since 2005.
The ISM manufacturing index surged from 58.5 in December to 60.8 in January.
However, Friday’s update on non-farm payrolls showed an increase of 36,000, which was below forecasts, while the unemployment rate declined to 9%.
This week’s UK data was mixed.
The Markit/CIPS purchasing managers index (PMI) surged from 58.7 in December to 62 in January, reaching its highest level to date.
An update from the Bank of England showed that mortgage approvals in the UK dropped from 42,563 in November to 47,287 in December, the lowest since March 2009.
Elsewhere in Europe, France’s CAC 40 advanced 1.1%, Spain’s IBEX 35 climbed 1% and Germany’s DAX surged 1.6%.
In the US, the Dow Jones Industrial Average (DJIA) added 2.3%, the S&P 500 index rallied 2.7% and the technology heavy NASDAQ 100 rose 0.65%.
The FTSE 100 is currently projected to rise 0.3% in early trade on Monday, while the DJIA is expected to shed 0.1%.