London’s blue-chip index was making good ground in mid-morning trading, following a stellar performance overnight on Wall Street.

Solid earnings from can maker Rexam, up 19.5p to 367p, and insurance groups Admiral, up 54p to 879p, and Aviva, 20.5p higher at 487.25p, together with gains for miners, added to the buoyant mood.

The FTSE 100 was 71.9 points higher at 5391.1.

British Airways also gained 11p to 259.5p as brokers upgraded their ratings following yesterday’s announcement that the airline was in merger talks with Spanish carrier Iberia.

Provident Financial, the consumer lender, led the FTSE 250, up 47p to 867p, after reassuring investors with its first-half results.

On the downside Bellway was a heavy faller, down 24p to 491.5p, after Goldman Sachs cut its rating on the housebuilder to "sell" from "neutral".

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