The U.K. FTSE 100 index rose 0.7%, or 38.57 points, to 5,261.59. Other European shares and U.S. stock futures also advanced. See Europe Markets. Most top-index oil and gas sector companies were posting a 2%-plus rise on Friday with Royal Dutch Shell (UK:RDSA 1,880, +41.00, +2.23%) (RDS.A 60.48, +0.52, +0.87%) , up 2.2%, BP (UK:BP. 566.60, +11.30, +2.03%) (BP 54.76, +1.10, +2.05%) , up 2%, BG Group (UK:BG. 1,164, +28.00, +2.46%) , up 2.9%, Tullow Oil (UK:TLW 1,241, +27.00, +2.22%) , up 2.1% and Cairn Energy (UK:CNE 3,057, +78.00, +2.62%) up 2.2%. Crude-oil futures climbed in electronic trading on Friday, ready to extend their winning streak to a seventh-straight session as traders bet on rising demand and worried about falling U.S. gasoline inventories. Crude oil for November delivery climbed as high as $78.17 per barrel -- the highest settlement level for a front-month contract since October 2008. The contract was recently up 32 cents at $77.90 a barrel. The contract has gained more than 11% from the Oct. 7 close of $69.57 in New York. See full story. Lender Lloyds Banking Group (UK:LLOY 94.58, +3.17, +3.47%) (LYG 6.14, +0.06, +0.99%) put in the best performance in percentage terms in the FTSE 100, rising 3.4%. Deutsche Bank upgraded the firm to buy from hold, saying it believes there is potential upside for the stock irrespective of whether the bank enters the government's asset protection scheme or goes down the route of raising cash from shareholders. Also, the bank said that it has agreed in principle to sell its Halifax Estate Agencies business to LSL Property Services for a pound. In total 1,050 jobs will transfer to LSL and 460 bank staff will be affected by the counter closures, with 360 full time roles likely to be lost. "The decision to sell the estate agency business, which has been loss making for some time, follows a strategic review undertaken by the group which concluded that an estate agency operation is no longer integral to its business model," Lloyds said. LSL (UK:LSL 280.00, +18.00, +6.87%) , which had earlier announced it was in talks to strike such a deal, rose 5%. Outside the top index, shares of National Express (UK:NEX 345.80, -126.30, -26.82%) dropped 25.1% after CVC Capital Partners and the Cosmen family said that they have decided not to make an offer for the U.K. bus and train company. The Cosmen family now intends to support the company's plans to undertake an equity fundraising within certain parameters. National Express said it believes it has a strong future as an independent listed company, "offering a compelling investment case building on the strength of its individual businesses." It is consulting with its major shareholders in connection with the potential equity fundraising, it said. National Express rival, Stagecoach Group (UK:SGC 154.30, -10.15, -6.18%) , declined 5.8% after it said that it is no longer in talks with CVC and the Cosmen family over acquiring National Express's U.K. bus and rail operations. On the plus side of smaller company share price moves, shares of BlueBay Asset Management (UK:BBAY 349.10, +9.30, +2.71%) rose 2.7%. It said that its estimated assets under management were $31.1 billion at the end of September, a 28% increase from their level at the end of June. "The first quarter of the financial year 2010 has been characterized by similar trends to those witnessed in the last quarter of financial year 2009: namely robust investor demand for credit product and strong investment performance," said CEO Hugh Willis. Sarah Turner is a markets reporter for MarketWatch in London.

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