The FTSE has extended early gains after figures showed inflation eased in July, with financials and mining stocks leading the charge into positive territory.
Shortly after midday, London's blue-chip index was up nearly a percentage point to 5,324.
Insurers are performing strongly on the back of consolidation vehicle Resolution posting a £203m first half profit. Aviva - which recently rejected a bid from RSA for its general insurance operations - is up over 3% and Prudential is also edging near 3% gains.
Mining stocks are among the day's top performers following broker predictions of stronger demand from China and strong metal prices. Kazakhmys and Eurasian Natural Resources both rose around 3%.
The sector has also been buoyed by the announcement yesterday Vedanta Resources will acquire a 60% stake of Cairn India. Cairn is down over 1% following the announcement.
Earlier in the day, figures released from the Office for National Statistics showed inflation slowed in July to 3.1%. The figures eased concerns the Bank of England will raise interest rates, making equities more attractive.
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