By Barbara Kollmeyer, MarketWatch

MADRID (MarketWatch) -- A relief rally was set to sweep through London's benchmark index on Friday as projections show Scottish voters have opted to stay in the U.K., with sentiment expected to push European stocks higher as well.

Futures for the FTSE 100 index jumped 1% ahead of the open, with expectations that European markets will also rise at the open. 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. While the official tally is yet to be announced, projections from the BBC and Reuters showed victory for Scottish residents voting to remain a part of the U.K.

The British pound has gained, as was expected, on relief over the expected "No" vote. Sterling (GBPUSD) last changed hands against the dollar $1.6443, versus $1.6400 late Thursday. The move is more dramatic when compared with a $1.6260 level late Wednesday. U.K. government bonds were also expected to rally Friday.

Scottish stocks set to surge: Brenda Kelly, chief strategist at IG, said in a note that banks such as Royal Bank of Scotland PLC (RBS) and Lloyds Banking Group PLC (LYG) could stand out in any relief rally.

Investec analysts said in a note that RBS shares have already seen a rally of 4.4% in anticipation of a "No" vote, and while a rally is expected Friday, they see little further upside for RBS.

Kelly said big Scottish firms like Standard Life PLC , Aberdeen Asset Management PLC and Weir Group PLC are also on the watch list.

"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 Kelly in a note.

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