The FTSE 100 has ended the day slightly higher, up 3 points, or 0.05%, to 5,903.4 boosted by Intercontinental hotels and BAE Systems.
Intercontinental Hotels led the gains with an increase of 2.78% to 905p, as traders bought in ahead of next week’s interim results, while BAE climbed 2.64% to 369.5p, on hopes it will benefit from a deal brokered by the British MoD to supply 72 Eurofighter jets to Saudi Arabia.
Meanwhile advertising giant WPP also performed well, with gains of 2.11% to 652p, after reporting a 30% increase in first half profits and announcing plans to ramp up its share buyback programme.
British Energy continued its downward spiral with a drop of 4.39% to 685.5p, while miners suffered as China increased its base rate, causing Rio Tinto to slip 2.16% to 2,722p, while Kazakhmys fell 2.34% to 1,209p.
Elsewhere Imperial Tobacco posted strong gains of 2.25% to 1,818p following a favourable US court ruling against the tobacco sector, while PartyGaming ended the day down 2.2% to 111p after brokers downgraded the stock because of industry risk.
In the US the Dow Jones Industrial Average is up 9.29 points, or 0.08% to 11,344.25, with Altria offsetting losses from Dell.
Altria, the parent of cigarette maker Philip Morris USA, is currently up 3.5% to $83.58 after a US judge did not impose any fines despite finding the government had proved its case which accused cigarette makers of a decades-long conspiracy to hide the dangers of smoking.
Meanwhile Microsoft shares have gained 2.31% to $25.27 as investors took its move to buy back 155 million shares in a dutch auction tender at $24.75 per share as providing a floor for the software maker's stock.
However Dell, the world's largest personal computer maker, brought the index down as it fell 7.06% to $21.19 after the company said its quarterly profit fell 51% as revenue growth slowed, while it revealed it had received a notice from the Securities and Exchange Commission requesting information on accounting reporting matters.
Elsewhere Ford Motor is down 3% to $7.93 as reports it is considering closing more factories and eliminating more management jobs to cut North American salary costs, while General Motors is currently leading the losers with a drop of 1.73% to £30.03.IFAonline
'IFAs bore the brunt'
'Recovery or boom'
Staying invested could prove lucrative
Consider lasting powers of attorney