London stocks had extended gains by midday on Wednesday, underpinned by deal news, as investors eyed the latest US inflation reading.
The 100 was up 0.5% at 7,196.84.
AJ Bell financial analyst Danni Hewson said: “The FTSE 100 built on Tuesday’s gains to trade around a one-month high suggesting investors have moved on from the latest set of jitters over Covid variants for now.
“Progress on a huge US stimulus package helped stocks close in positive territory on Wall Street, providing a positive cue for European equities – while the carving up of the UK market by overseas buyers continues apace as Avast agrees to a merger with NortonLifeLock.
“The other key threat stalking the markets is inflation and US inflation figures out this afternoon could be the latest test for the current sunnier sentiment.”
US inflation figures for July are due at 1330 BST.
In equity markets, Spirax-Sarco Engineering was sitting pretty at the top of the FTSE 100 after lifting its dividend by 15% as it reported a 39% increase in first-half adjusted pre-tax profit.
Cybersecurity firm Avast rallied after it agreed to be bought by US rival NortonLifeLock in a £6.2bn deal and posted a jump in first-half adjusted earnings and revenue.
Prudential gained as it said first-half new business profits rose 25% and adjusted operating profit from continuing operations was 19% higher, but struck a cautious note over the short-term outlook due to Covid uncertainty.
Admiral Insurance ticked higher, with shareholders set to cash in as the company paid an increased interim dividend and extra payouts after the sale of its Penguin Portals business. The insurer also posted a 76% increase in half-year pre-tax profit from continuing operations.
Transport infrastructure group Hill & Smith racked up healthy gains after it said first-half profit and revenue rose amid a good recovery in trading across all of its divisions, and upgraded its outlook for the year.
4Imprint was in the black as it reinstated its dividend and highlighted a “robust” recovery in demand in the first half.
On the downside, Quilter slumped despite hailing “robust” interim results, as it set aside more money to cover compensation relating to the Lighthouse DB transfer review.
Market Movers
FTSE 100 (UKX) 7,196.84 0.50%
FTSE 250 (MCX) 23,618.67 0.20%
techMARK (TASX) 4,689.42 0.54%
FTSE 100 – Risers
Spirax-Sarco Engineering (SPX) 15,685.00p 3.70%
JD Sports Fashion (JD.) 965.80p 2.77%
Avast (AVST) 582.40p 2.46%
Prudential (PRU) 1,487.00p 2.45%
London Stock Exchange Group (LSEG) 8,014.00p 2.09%
International Consolidated Airlines Group SA (CDI) (IAG) 169.88p 1.81%
Fresnillo (FRES) 785.40p 1.71%
Hargreaves Lansdown (HL.) 1,495.00p 1.56%
Smiths Group (SMIN) 1,465.50p 1.49%
Informa (INF) 539.40p 1.39%
FTSE 100 – Fallers
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,438.00p -1.45%
National Grid (NG.) 945.10p -0.67%
Lloyds Banking Group (LLOY) 46.41p -0.49%
Entain (ENT) 1,962.00p -0.48%
Rio Tinto (RIO) 6,136.00p -0.45%
ITV (ITV) 117.05p -0.43%
Rightmove (RMV) 704.20p -0.42%
Phoenix Group Holdings (PHNX) 697.20p -0.40%
B&M European Value Retail S.A. (DI) (BME) 559.00p -0.36%
Burberry Group (BRBY) 2,139.00p -0.33%
FTSE 250 – Risers
Hill & Smith Holdings (HILS) 1,760.00p 5.90%
4Imprint Group (FOUR) 3,000.00p 4.90%
Apax Global Alpha Limited (APAX) 218.50p 4.05%
Spirent Communications (SPT) 290.20p 2.40%
Capita (CPI) 47.00p 2.40%
Rank Group (RNK) 182.80p 2.35%
Morgan Sindall Group (MGNS) 2,350.00p 2.17%
Virgin Money UK (VMUK) 207.80p 1.86%
Trainline (TRN) 373.80p 1.80%
SSP Group (SSPG) 255.50p 1.79%
FTSE 250 – Fallers
Quilter (QLT) 159.60p -5.51%
Watches of Switzerland Group (WOSG) 1,028.00p -2.84%
Chrysalis Investments Limited NPV (CHRY) 262.00p -2.60%
Ferrexpo (FXPO) 442.00p -2.00%
Hammerson (HMSO) 36.09p -1.98%
Cineworld Group (CINE) 62.08p -1.93%
Jupiter Fund Management (JUP) 275.00p -1.79%
IWG (IWG) 322.30p -1.74%
BMO Global Smaller Companies (BGSC) 165.00p -1.67%
Convatec Group (CTEC) 226.40p -1.57%
