The FTSE 100 hit another 12-month high this morning, gaining about 16 points to 4,562 on further bid speculation.
Alliance Unichem, the distributor of drugs to chemists, is up 32.5p to 635p on news of an approach - which follows yesterday's news WH Smith could be bought out by venture capitalist Permira.
Barclays is up 13.25p to 505.75p after UBS raised its target share price.
BAE Systems is up 4.5p to 221.25p after an upgrade by analysts at Citygroup.
Xstrata leads the miners with a 11p rise to 698p after analysts forecast rising global demand on falling exports of coal from China, where domestic power companies are concerned about maintaining stockpiles.
Tesco reported a 17% rise in first-half profit, but shares are down 3.5p to 256.5p as some investors take profit and others register concerns about the pace of overseas expansion – typically a graveyard for UK retailers.
William Hill is down 7.25p to 539p after a downgrade.
Cairn Energy has again led the FTSE 250 higher after reporting yet another major strike in offshore Indian fields.
The index is up about 24 points to 6,310.
The oil company is up 125p to 1,015p, giving it a market value of £1.5bn.
Arm has reported a steep jump in first quarter profit on stronger sales of mobile phones which use its chips, sending shares up 3.75p to 128.25p.
Carpetright is down 12p to 1,016p after reporting rising sales on the back of price cuts in the past six months.
Overseas, the Dow Jones Industrial Average index closed down 14.12 points at 10,437.85 yesterday. The S&P 500 shed 1.21 points to 1,135.82, while Nasdaq’s Composite fell 24.69 points to 2,020.43.
Shares in Japan moved up sharply, sending the Nikkei 225 index up 188.05 points to 11,952.26 after analysts said companies such as Sharp would see profits rise on demand for LCD television sets.IFAonline
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation