The FTSE 100 has ended the day up finished up 41.2 points, or 0.69%, to 5,971.3, following bid speculation about Brambles Industries and Hanson.
However Royal & Sun Alliance posted the biggest gains with a rise of 4.33% to 150.75p, as the market seemed to welcome the news it is exiting its US operations, despite taking a hefty loss on the disposal through a management buyout.
Pallet maker Brambles Industries ended the day with the second biggest gains of 4.27% to 488p, while Hanson is up 3.47% to 746p, following bid speculation on the two companies.
Partygaming also performed well with a rise of 4.19% to 105.75, while BG Group climbed 2.56% to 660p, although gains were limited by Reuters which slipped 2.71% to 431p for the biggest drag on the index.
Meanwhile ICAP fell 2.16% to 509p, after its update earlier in the day, closely followed by SABMiller which fell 1.17% to £10.15, while insurer Resolution dropped 1.12% to end the day at 615.5p.
In the US the Dow Jones Industrial Average is up 2.08 points, or 0.02%, to 11,691.32, as a brief rally which saw it pass its previous record high faded, with some investors choosing to lock in profits.
Earlier in the session the 110-year-old Dow Jones index rose to 11,724.86, above its previous record closing high of 11,722.98 set on 14 January 2000, with General Motors leading the gains with a rise of 1.77% to $32.85.
However Merck is limiting the rises with a drop of 1.08% to $41.94, closely followed by Proctor & Gamble which is down 0.88% to $62.18, while McDonalds has slipped 0.7% to $39.54.
On the bright side, while General Motors is posting the biggest gains, Intel is performing well with a rise of 1.47% to $20.70, closely followed by Alcoa which is up 0.86% to $27.99 while Exxon Mobil has added 0.63% to $67.55.IFAonline
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