The FTSE 100 witnessed a pre-Christmas lift during a largely subdued trading session as London’s markets closed early.
It came despite a weak session for London’s housing stocks, driven by another profit warning at housebuilding giant Vistry.
Retail stocks were higher amid hopes that consumer sentiment will improve next year, despite weak sales and footfall data for the key weekend before Christmas.
The FTSE 100 finished 34.27 points, or 0.42%, higher to end the day at 8,136.99.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “The FTSE 100 delivered positive Christmas Eve trading, despite a week clouded by lacklustre economic data.
“Monday’s session saw the index close slightly lower after opening in the red, as final GDP figures revealed the UK economy stalled in the third quarter with no growth from the prior period.”
Elsewhere in Europe, trading was more mixed, with German stocks slipping back after gains in the previous session.
The Cac 40 ended 0.25% higher for the day and the Dax index was down 0.18%.
Meanwhile, sterling rebounded slightly after dipping to its lowest level for seven months on Monday after weak UK GDP figures indicated that more rate cuts could be on the horizon.
The pound was up 0.12% at 1.255 US dollars but up 0.24% at 1.207 euros.
In company news, Vistry was among the heaviest fallers after the Kent-based housebuilder warned that delays to some home completions and deals will push its annual profit down by about £50 million, in its third profit warning in recent months.
Pre-tax profit is expected to be around £250 million, down from previous guidance of £300 million, for the calendar year.
The group, which builds affordable housing and works with local authorities, saw shares slide by 16.3% to 547.5p as a result.
Elsewhere, maritime analytics firm Windward saw shares soar after it agreed to be taken over by a US investment fund in a £216 million deal.
The company, which is chaired by former BP boss Lord John Browne, is to be bought by Octopus UK Bidco, a subsidiary of an FTV Capital investment fund for 215p per share.
Shares in Windward finished up 42.5% at 208p at the close of play.
Safestore was slightly higher at the end of trading after the self-storage group said it is launching a joint venture with Nuveen Real Estate to snap up Italian rival Easybox.
It said the joint venture will buy Easybox for 175 million euros (£145 million). Safestore saw shares move 0.5% higher to 655.5p.
The price of oil lifted as positive US economic data helped support hopes that demand will rise in the coming months.
A barrel of Brent crude oil was up by 0.66% to 72.8 dollars (£58) as markets were closing in London.
The biggest risers on the FTSE 100 were Airtel Africa, up 4.2p to 112.85p, Pershing Square, up 84p to 3,852p, Anglo American, up 48.5p to 2,378.5p, Vodafone, up 1.28p to 67.75p, and Melrose Industries, up 9.2p to 549.1p.
The biggest fallers on the FTSE 100 were Persimmon, down 29p to 1,186.5p, Entain, down 8.6p to 684.2p, Endeavour Mining, down 9p to 1,435p, Ashtead, down 30p to 4,947.5p, and Barratt Redrow, down 2.4p to 432.25p.
