The FTSE 100 has ended the session up 132.5 points, or 2.21%, to 6,133.2 as takeover news and strong metal prices helped the index recover from yesterday's losses.
Imperial Tobacco Group posted the biggest gains with a rise of 8.55% to £22.22, as it finally launched a cash bid for its Franco-Spanish rival Altadis, while hedge fund manager Man Group advanced 6.9% to 526.5p.
Miners performed well with Antofagasta climbing 6.14% to 475.5p, closely followed by BHP Billiton which advanced 6.01% to £10.49 as metal prices increased, while Unilever added 5.85% to £14.84.
In addition the FTSE 100 ended the day with no losing stocks.
In the US the Dow Jones Industrial Average is up 26.68 points, or 0.22%, to 12,160.08, as investors seem to have shrugged off inflation fears.
Alcoa is posting the biggest gains with a rise of 2.43% to $34.13, closely followed by Du Pont which is up 1.46% to $50.74, while JP Morgan Chase has advanced 1.35% to $47.94.
Altria Group has also climbed 1.12% to $84.84, while Procter & Gamble is up 0.98% to $61.96, although gains are being limited by General Motors which is down 1.22% to $29.88, and AT&T has dropped 0.59% to $36.99.
And technology stocks are off to a poor start with United Technologies down 0.75% to $64.26, while Hewlett-Packard has dropped 0.58% to $39.56, and Microsoft has declined 0.51% to $27.26.
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