Buying interest in the London market has returned as solid economic and corporate news helped stem two successive days of losses.
The Footsie, which set year-long highs earlier this week, improved 24 points to 4245.5 by lunchtime as hopes grew of a strong start to trading in New York.
The mood was further helped by data showing a smaller-than-expected drop in British retail sales, while a CBI study offered a glimmer of hope to manufacturers with order books at the best level for nine months.
With sentiment among banks already strong, Lloyds TSB rose 4p to 437p, HBOS lifted 17.5p to 734.5p and insurer Prudential cheered 5.75p at 439.75p.
Other risers included Royal & Sun Alliance, up 3p at 153.5p, and Aviva - 5.5p stronger at 529.5p.
And Cattles moved to the top of the FTSE 250 Index risers board after posting a 30 per cent rise in half-year pre-tax profits and forecasting a strong 2003. Shares rose 22.5p to 349p.
Back in the Footsie, Allied Domecq topped the leaderboard amid speculation that it could be the subject of bid interest in the US. Shares gained 4 per cent, up 15.25p at 397p, by lunchtime.
Elsewhere, the proposed merger of support services pair Parkman and Mouchel attracted shareholder support. The tie-up, which should create a business with an order book worth more than £700 million, lifted Parkman 19p to 255p while Mouchel added 26.5p to 207.5p, a gain of 15%.