A trader monitors the screen on a trading floor in London.

London - Britain's top share index notched up further gains early on Monday, in tandem with a late rise on Wall Street in the previous session, helped by talk of a short-term deal which could break the budget impasse in the United States.

London's FTSE 100 was up 20.36 points, or 0.3 percent at 6,174.77 by 10:05 SA time, remaining at four-and-a-half year highs.

Trade, however, was expected to be quiet with heavy snow causing havoc for city workers in London and the United States closed for Martin Luther King junior day.

In the United States, Republicans said the House would consider a bill to raise the US debt ceiling enough to allow the country to pay its bills for another three months, which would buy time for the Democratic-controlled Senate to pass a budget plan that shrinks the federal deficit. - Reuters