The FTSE 100 Index rose 43.20 points, or 0.7%, to 6,230 points today, led by British Airways and a strong start on Wall Street.
British Airways was the best performer, jumping 4.70% to £4.85 after it announced it had agreed a funding plan to tackle its £2.1bn deficit.
Life insurer Old Mutual gained 3.64% to £1.78 after Bear Stearns stuck with its "outperform" recommendation on the shares and lifted its price target to £2.15 from £2.00.
Royal & Sun Alliance rose 2.53% to £1.52, Friends Provident gained 1.29% to £2.15 and Prudential increased 1.77% to £6.61.
Vodafone rose 2.58% to £1.39 after Deutsche Bank turned buyer from its previous “hold” stance and lifted its price target to £1.55 from £1.25 following the first half figures yesterday.
In the US, the Dow Jones industrial average is up 18.17 points, or 0.15%, at 12,236.18 points after hitting a record of 12,242.58 points, helped by a proposed airline takeover, a report of new business for Boeing and favorable brokerage comments on.
US Airways has gained 12.9% to $57.50 after it said it had offered $8bn for bankrupt Delta Air Lines.
Boeing has risen 1.6% to $87.07 on news it is poised to receive more than $10bn worth of additional business in the coming weeks.
Google is up 1.4% at $496.31 after Credit Suisse said it reinstated coverage of the company with an "outperform" rating following the completion of the YouTube acquisition.
Shares of Altria Group have risen 1.3% to $82.19 after Goldman Sachs raised its rating on the stock.IFAonline
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