The FTSE 100 has ended the day above the 6,000 barrier with a rise of 38 points, or 0.64%, to 6,004.5, on the possibility of Corus being involved in a takeover deal.
The Anglo-Dutch steelmaker was the biggest gainer with a rise of 16.26% to 463.75p, on reports Indian steelmaker Tata Steel is considering an offer for the company, closely followed by BG Group which is up 3.44% to 646.5p.
Miners also performed well with BHP Billiton up 4.14% to 906p, closely followed by Rio Tinto which climbed 3.58% to £24.87, while Vedanta Resources ended 3.41% higher at £12.12.
However Swiss miner Xstrata was the biggest drag on the index with a drop of 7.57% to £20.15, closely followed by British Airways which dropped 1.83% to 442p, while Alliance Boots fell 1.83% to 780p, and BSkyB slipped 1.62% to 545p.
In the US the Dow Jones Industrial Average is down 1.29 points, or 0.01%, to 11,849.32, as traders said investors were avoiding taking big positions a day after the Dow hit an all-time high for a second straight day and before employment data out tomorrow.
Wal-Mart is the biggest drag on the index with a drop of 2.22% to $48.45, after it reported lacklustre September sales growth, closely followed by drug company Pfizer which is down 1.38% to $27.94.
Home Depot is also down 1.07% to $37.09, while AT&T has slipped 0.98% to $32.07 and Merck has fallen 0.69% to $41.65, although losses are being limited by Altria Group which is up 1.08% to $77.73.
Heavy equipment maker Caterpillar has posted the biggest gains so far with a rise of 2.24% to $67.01, closely followed by Exxon Mobil which is up 1.34% to $67.50, while 3M Company has added 1.15% to $75.73 and United Technologies has climbed 1.11% to $65.87.IFAonline
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created