LONDON MARKETS: London Stocks Rise As Scotland Votes To Stay In U.K.

By Barbara Kollmeyer, MarketWatch

MADRID (MarketWatch) -- Gains swept through London's benchmark index on Friday after Scottish voters opted to stay in the U.K., with those moves inspiring gains across Europe.

The FTSE 100 index rose 0.5% to 6,856.45. For the week, the London index has logged a gain of barely 0.2%, sharply underperforming a 1% rise for the Stoxx Europe 600 index .

The FTSE 100 rose 0.6% on Thursday, bucking three straight sessions of losses. The result from the referendum that day showed 55% of Scottish residents voted to reject independence for their country.

The British pound has gained, as was expected, on relief over the "No" vote. Sterling (GBPUSD) last changed hands against the dollar $1.6447, versus $1.6400 late Thursday. The move is more dramatic when compared with a $1.6260 level late Wednesday.

Scottish-linked stocks surge: Royal Bank of Scotland PLC (RBS) and Lloyds Banking Group PLC (LYG) stood out, rising 4% and 2.5%, respectively.

Among other Scottish firms, Standard Life PLC rose 1.4%, and Aberdeen Asset Management PLC gained close to 2% and Weir Group PLC added 2%.

"Investors in these firms will be relieved that management will be able to devote their time to business performance, rather than fretting about contract changes or headquarters moves," said Brenda Kelly, chief strategist at IG, of those companies in a note ahead of the open.

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