The FTSE100 is currently up 19.5 points higher at 5,700.7 with the FTSE250 up 42.6 points at 9,239.7 and the FTSE Smallcaps up 1.9 points at 3,324.2.
Volume is thin so far with only 682 million shares changing hands in 94,906 deals.
Looking ahead to Wall Street, IG Index noted that the DJIA to open around 8 points lower at 11,037 as investors remain prudent ahead of Thursday's FOMC interest rate decision.
Today’s look at individual Stocks:
SABMiller was back in demand today after recent weakness, up 12.5p at 935.5p, as the rand staged a fight back against the dollar after its recent 20% plus slump. The stock was also lifted by bullish remarks by JP Morgan which reiterated its overweight stance on the drinks giant and said the group still remains its top pick in the beverages sector.
Rexam is up 8.5p at 496p after Citigroup upgraded the industrial packaging manufacturer to buy from hold on valuation grounds, with an improved target price of 550p from 530p.
Energy and basic material stocks once again dominated the leaders board as consolidation hopes reached fever pitch following yesterday's mega-merger in North America of Phelps Dodge, Inco, and Falconbridge.
In response, Numis said Xstrata, which failed in its own bid for Falconbridge, is now effectively holding a multi-billion dollar war chest and is bound to look to consolidate further investments. The broker argued Lonmin and Antofagasta would make good takeover targets and the FT reported Xstrata was recently rumoured to have approached Anglo American with a merger proposal this year.
Oil stocks were on the rise again spiking above $72 a barrel on the back of on-going concerns over supply.
BP is currently up 4.5p at 614p, Shell is up 16p at 1,817p, BG Group is up 8.5p to 705.5p and Cairn Energy is up 6p at 2,062p.
Housebuilder Persimmon continued to reap the benefits of yesterday's positive trading update, rising 12p to 1,212p, but some of the shine was taken off as Deutsche Bank downgraded the housebuilder to hold from buy.
The downside today saw utilities continued to be under pressure after yesterday's Ofgem's initial price control proposals. In response to this, Citigroup downgraded National Grid to hold from buy, helping to send shares down 6.5p to 590p.
Smith & Nephew was also down today 3p at 411.5p, as investors fretted over a US probe into some of the world's major orthopaedics companies. In response, Smith & Nephew was downgraded to neutral from overweight at Bridgewell Securities, with the broker arguing although the group has not yet been subpoenaed it is unlikely to be the only major orthopaedics company to escape.
The Invest my £1000 stock, Tullow Oil surged 17p to 371p on the back of an upbeat drilling update into its 50% owned Waraga-1 well in Uganda. In a statement this morning, the oil explorer said initial tests exceeded its expectations with 4,200 barrels per day produced. A full update shall be posted tomorrow.
In response, Merrill Lynch reiterated its buy advice and said the news is a 'further unambiguous positive' for Tullow.
