The FTSE 100 has ended the day up 25.1 points, or 0.4%, to 6,254.9, as energy stocks gave the index a boost.
National Grid posted the biggest gains with a rise of 6.8% to 746.5p, following decent interim results and news of asset disposal and share buyback plans, closely followed by Shire which climbed 4.21% to £10.52.
A target upgrade to 460p from 450p helped shares in Bradford & Bingley which climbed 4.11% to 468.25p, closely followed by Old Mutual which gained 4.06% to 185.75p, while Northern Rock added 2.96% to £12.18.
Mining firm Vedanta Resources was the biggest drag on the index with a drop of 7.07% to £12.88, on news of a $1.9bn investment in an Indian power plant, while Reed Elsevier dropped 4.5% to 573.5p, over worries about its education unit, and British Energy slipped 3.4% to 468.5p.
In the US the Dow Jones Industrial Average is up 34.18 points, or 0.28%, to 12,285.89, as tame inflation data and merger activity got buyers excited.
Boeing is posting the biggest gains with a rise of 2.49% to $89.25, closely followed by McDonalds which is up 1.14% to $41.57, while Merck has gained 1.09% to $44.63, and Microsoft has climbed 1.03% to $29.42.
Verizon Communications is the biggest drag on the index so far with a drop of 0.67% to $35.85, closely followed by Johnson & Johnson which is down 0.64% to $66.11, while Home Depot has slipped 0.64% to $37.38, and 3M Company is down 0.52% to $80.29.IFAonline
An ambitious objective
'Something completely new'
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m