The FTSE 100 index has ended the day at its highest level in almost six years with a rise of 32 points, or 0.51%, to 6,260, as BAE Systems soared higher.
Aerospace group BAE Systems ended the session up 6.86% to 424.5p after the government scrapped a two-year Serious Fraud Office (SFO) investigation into allegations of corruption.
British Energy also performed well with a rise of 5.17% to 539p, closely followed by Alliance & Leicester which gained 3.4% to £11.56, while BT added 3.28% to 315p, and insurer Standard Life climbed 2.42% to 296.5p.
On the downside, ITV was the biggest drag with a fall of 2.01% to 109.75p as NTL is thought to have pulled out of bidding for the company, closely followed by Cairn Energy which slipped 1.64% to £19.14, while Vedanta Resources dropped 1.58% to £12.45 and International Power fell 1.52% to 389.25p.
In the US, the Dow Jones Industrial Average is up 55.04 points, or 0.44%, to 12,471.8 in early trading, despite losses from Exxon Mobil.
Honeywell International is posting the biggest gains with a rise of 3.28% to $44.09, closely followed by Intel which is up 1.59% to $21.11, while Procter & Gamble have gained 1.18% to $64.10.
JP Morgan Chase is also off to a good start with a rise of 1.04% to $48.45, closely followed by Boeing which has climbed 0.9% to $90.74, although gains are being limited by IBM which has slipped 0.22% to $95.15.
Exxon Mobil is the biggest drag on the index at the moment with a fall of 0.67% to $78.20, closely followed by Johnson & Johnson which is down 0.41% to $65.98, while 3M Company have also fallen 0.41% to $78.45, and McDonalds has dropped 0.37% to $43.53.IFAonline
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