There was plenty of good news to boost the FTSE 100, which was 0.2% higher at 7,777 around midday.
GKN (GKN) topped the blue-chip winners after rejecting a takeover off of 405p per share from Melrose. Shares in the plane parts manufacturer soared 28.6% to 428p on the news. Melrose (MRO) was also up 5.2% to 226.3p.
Brent crude oil was stable at $69.17 per barrel. Gold glittered at $1,329 per ounce and copper was unmoved at $3.21 per pound.
Wall Street was back on form thanks to optimistic investor sentiment on US economic growth. The biggest beneficiary was the Dow Jones, up 0.8% at 25,574.
MID AND LARGE CAP RISERS AND FALLERS
Shares in engineer Smiths (SMIN) were lifted 4.6% to £16.39 on the announcement that US tax reform would cut its tax rate to between 23% and 2% from its 2019 financial year.
Housebuilder Bovis Homes (BVS) provided a much needed fillip for the sector after announcing full year results would meet forecasts. The stock was flat at £11.50.
B&M European Value Retail (BME) revealed its store opening strategy helped to drive sales by 22.7% in the three months to 23 December. The stock advanced 3% to 408.8p.
Pub operator Mitchell & Butlers (MAB) nudged 1.1% to 270.6p as bad weather in the run up to Christmas restricted sales growth to 1.6%.
Sirius Minerals (SXX) was down 2.7% at 23.2p after announcing its Woodsmith mine project in North Yorkshire was on track to deliver commercial production.
SMALL CAP RISERS AND FALLERS
Software specialist SDL (SDL) reported it expects approximately an 8% increase in sales in 2017, but this did not stop the stock sliding 0.9% to 426p.
XP Power (XPP) gained a 2.2% boost to £37.10 on the back of a large increase in fourth quarter sales and strong order book.
On AIM, Somero Enterprises (SOM) hiked its annual earnings and sales guidance, driven by higher volumes and cost management. Shares in the concrete equipment firm jumped 8% to 370.9p.
Elsewhere, Nighthawk Energy (HAWK) plummeted 20.9% to 0.4p as non-routine workovers on several wells hit overall production.