FED signals help Britain's index brush off Italy woes.

• Position: U.S. Federal Reserve Board interest rates cut

London's FTSE 100 ended higher on Friday as bolstered hopes of a US interest rate cut stoked risk appetite, though the index's advances were reined in after political turmoil in Italy triggered a broad sell-off in bank stocks.

The blue-chip index ended up 0.2 percent, after climbing as much as 0.7 percent. The mid-cap FTSE 250 rose 0.4 percent, as Acacia Mining soared after agreeing to an increased buyout offer from Barrick Gold. Acacia surged more than 19 percent to 222.6 pence on its best day ever after Barrick, its largest...