The FTSE 100 is capitalising on a strong overnight result on Wall Street and in Asia, up 31.6 points, or 0.49%, to 6537.8 in early trading.
Supermarket giants Tesco recorded a better than expected 3.5% rise in UK sales, pushing the chain to an early 18.5 point gain, or 4.25%, to 454.
Homebuilders are continuing a recovery, with Persimmon and Taylor Wimpey again at the forefront, up 3.68% to 1029 and 3.54% to 285.5 respectively.
After a magnificent day yesterday, mining stocks are beginning to correct, with Lonmin down 128 points, or 3.46%, to 3576 and Antofagasta 18.5 points lower, or 2.3%, to 784.5.
Northern Rock continues to slide, down a further 2.5 points this morning, or 1.89%, to 129.6.
In New York, stocks brushed aside the recent credit crisis, leading the Dow Jones to an all time high of 14087.55 - a 191.92 point overnight gain, or 1.38%.
Investors were no doubt influenced by former Federal Reserve chairman Alan Greenspan, who says the global credit crisis may be nearing an end.
McDonald's posted a record high, reaching 56.01 at the close, a jump of 1.54 points, or 2.83%.
While most of the Telco’s had a flat day, Verizon soared to a year high, up 1.12 points, or 2.53%, to 45.4; while Hewlett-Packard gained 1.19 points, or 2.39%, to finish on 50.98.
General Motors was the only stock to significantly dip, dropping 0.65 points, or 1.77%, to 36.05.
Asian stocks rocketed last night as credit fears began to lift on the continent, with a weaker yen also helping exporters to drive the Nikkei to a 200.82 point gain, or 1.19%, to 17,046.78.
The positive credit news from Greenspan led financial group Mitsubishi UFJ to the das largest gains, up 59 points, or 5.59%, to 1,114.
The world's largest supplier of memory chip testers Advantest Corp also enjoyed a solid day, up 180 points, or 5.04%, to 3,750; while brokers Nomura Holdings did well, closing on 2,010 – a gain of 95 points or 4.96%.
Japan's biggest maker of soy sauce Kikkoman Corp fell the most in seven years after downgraded to ‘sell’ by KBC Securities. It closed the day on 1,663 – a drop of 143 points or 7.92%.
IHI Corp didn’t fare too much better, it fell 17 points, or 6.05%, to 264.
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