The FTSE 100 Index rose 38.50 points, or 0.66%, to 5856.60 points today, led by bid talk for terrestrial broadcaster ITV.
ITV gained 4.33% to 102.50p, having started the day on the back foot, on persistent bid talk and a strong analyst presentation following its interim report.
British Airways rose 3.11% to 390p after Swiss broker UBS issued a bullish note lifting its price target to 500p from 420p.
Barclays gained 1.74% to 644p after Deutsche Bank raised its price target to 750p from 710p previously, arguing the shares currently look cheap.
Scottish Power also rose 1.59% to 607.50p, National Grid advanced 0.98% to 620p and International Power gained 2.60% to 306.25p.
On the downside, Xstrata fell 1.22% to 2,190p and BHP Billiton declined 0.90% to 989p following yesterday’s news the Federal Reserve has decided to hold interest rates at 5.25%.
Fellow miner Rio Tinto fell 1.02% to 2,722p as it traded ex-dividend.
In the US, the Dow Jones Industrial Average has gained 37.78 points, or 0.3%, to 11,210.97 points, led by technology stocks.
Cisco Systems has climbed $2.34, or 14%, to $19.63 after it said revenue may jump as much as 20%.
Citigroup has added 29 cents to $48.60 after it said the China Banking Regulatory Commission approved Citigroup's license as a qualified domestic institutional investor.
Homebuilders have tumbled for a second day after policy makers said yesterday they expect a sagging housing market to slow growth in inflation.
KB Home has lost $1.94 to $42.51 and D.R. Horton has dropped 96 cents to $20.95.IFAonline
15% increase in number of claims paid
Open architecture philosophy
Inflation above 2% for first this this year
Focus on customer centricity
To repay £900,000 to customers