The FTSE 100 has ended the session up 17.5 points, or 0.28%, to 2, following reports of a bid approach for chemist Alliance Boots.
The company posted the biggest gains with a rise of 14.11% to 930p, after it announced the bid was preliminary and highly conditional, meanwhile Morrison supermarket climbed 4.23% to 320.5p, while DSG International added 3.69% to 175.5p.
Retailer Next also performed well with a rise of 3.65% to £20.73, while Kingfisher gained 3.11% to 257.25p, although gains were limited by GlaxoSmithKline which slipped 0.97% to £14.35.
However miners were the biggest drag on the index with Xstrata down 2.59% to £24.05, Lonmin dropped 1.49% to £30.42, closely followed by Antofagasta which 1.05% to 471p, while Rio Tinto declined 1.02% to £27.08.
In the US, the Dow Jones industrial average is up 12.10 points, or 0.10%, at 12,272.80 points, as a report showing a resilient job market outweighed mounting concerns about the sub-prime mortgage market.
New Century Financial, a lender which offers mortgages to people with poor credit histories, has fallen 15% to $3.30.It said it had stopped accepting new loans and had received $265m in financing but was negotiating with lenders for further relief.
Advancing stocks include shares of companies whose profits are most dependent on the economy, as data showing healthy jobs growth cheered the market after days of heavy selling by global equities markets.
Manufacturer 3M is up 0.8% at $75.10, American Express has gained 0.28% to $56.98 and JP Morgan Chase has risen 0.35% to $48.91.If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7034 2681 or email [email protected]IFAonline
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