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
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till