The FTSE 100 has ended the day up 19.8 points, or 0.3%, to 6,579.3, as merger and acquisition speculation boosted the index.
Experian posted the biggest gains with a rise of 3.91% to 598.5p, on reports US peer Acxiom has accepted a $3bn takeover deal, while Old Mutual climbed 2.5% to 180.3p on a broker upgrade.
Oil companies also gained as Royal Dutch Shell ‘A’ stocks added 3.04% to £18.31, while Royal Dutch Shell ‘B’ shares climbed 3.68% to £18.59, while BP gained 2.42% to 570.5p, although gains were limited by BT Group which fell 2.85% to 306.25p.
Miners also suffered as Xstrata dropped 2.55% to £26.75, closely followed by BHP Billiton which slipped 2.24% to £11.80, while Rio Tinto declined 1.96% to £35, and Intercontinental Hotels fell 2.33% to £13.40.
In the US, the Dow Jones Industrial Average is down 12.43 points, or 0.09%, to 13,475.1 in early trading, despite Federal Reserve chairman Ben Bernanke suggesting the fallout from the sub-prime mortgage market would weigh on home sales, but is not expected to hurt the economy overall.
Caterpillar is the biggest loser with a fall of 1.89% to $74.52, closely followed by Verizon Communications which has slipped 1.15% to $42.25, while Coca-Cola has dropped 1% to $52.21.
IBM is down 0.74% to $105.09, while American Express has fallen 0.61% to $63.59, although losses are being limited by Honeywell International which has climbed 0.46% to $58.41.
Boeing is posting the biggest gains with a rise of 1.54% to $96.81, closely followed by Du Pont which is up 1.13% to $52.08, while AT&T has added 0.59% to $41.38, and United Technologies has advanced 0.54% to $68.85.
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£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards