Shell (RDSB) and BP (BP.) enjoyed a rally thanks to stronger oil prices, which helped to boost the FTSE 100 by 0.7% to 7,469 around midday.
Brent crude oil rose 1% to $47.38 per barrel. Gold glittered at $1,254 per ounce and copper declined 0.3% to $5,643 per tonne.
Shell gained 1.2% to £21.53 and BP was up 1.3% to 466.9p.
In the US last night, the tech sell-off worsened and dragged the tech heavy Nasdaq 0.5% lower to 6,165.
This morning, Japan's Nikkei 225 improved 0.5% to 19,943 as the Bank of Japan kept interest rates steady.
FTSE 100 RISERS AND FALLERS
High demand for fresh food bode well for UK supermarket chain Tesco (TSCO). The company beat market expectations as it reported a 2.3% increase in like-for-like sales in the three months to the end of May, although this failed to rally the shares at 179.4p.
According to media speculation, activist shareholder Elliot Management welcomed the appointment of former Amcor CEO Ken MacKenzie as the next chairman of BHP Billiton (BLT), replacing Jac Nasser.
The new chairman would have to deal with calls to ditch its oil division and attempts to refresh the board. Shares in the mining giant nudged 0.7% to £11.68.
Aircraft engine maker Rolls-Royce Holdings (RR.) rallied 1.8% to 911.1p after starting 2017 on a strong footing. It said that all divisions performed in line with its expectations.
FTSE 250 RISERS AND FALLERS
According to reports, Australian financial services firm Link Group and three buyout funds were finalising the last details for their rival offers for Capita's asset management services division. The deal was expected to be worth up to £800m. Shares in Capita gained 1.4% to 655p.
A lucrative contract win for Amec Foster Wheeler (AMFW) pushed the stock up 0.6% to 486p. It won a contract worth A$298m for the Gruyere gold project in Western Australia with its joint venture partner Civmec Construction and Engineering.
SMALL CAP RISERS AND FALLERS
Among the high flyers in the small cap space was Avanti Communications (AVN). The satellite telecoms services provider sealed a deal with investment firm HPS for a $100m three-year super senior facility, sparking a 37.5% jump in the stock to 11p.
On readmission to the London Stock Exchange, Flying Brands (FBDU) was up 19.7% to 3.8p. The investment company completed the acquisition of Stone Check Software.
In the oil and gas sector, Diversified Gas & Oil (DGOC) resumed trading on AIM after it finalised an agreement to acquire certain gas and oil assets of Titan Energy.