FTSE up in morning trading

Consolidation hopes for the insurance sector drove the London market forward today as Friends Provident and Resolution confirmed merger talks.

Friends Provident soared more than 7%, with news of the potential £8.3bn (€12.36bn) merger also lifting Legal & General, Prudential and Standard Life.

The FTSE 100 Index rallied 25.7 points to 6610.9 with the insurance sector accounting for three of the top four risers.

Friends Provident's share price was up 13.85p to 200.25p, with Resolution 3p ahead at 632p.

The consolidation talk also left Legal & General more than 4% - or 6p - higher at 157.2p, Prudential 14p up at 737.5p and Standard Life 1.25p ahead at 324.75p.

Barclays also moved up the risers board after it revealed the Chinese and Singaporean governments now owned sizeable stakes in the business.

The pair will increase their holdings if Barclays is successful with an offer for ABN Amro, which it increased today with a new proposal worth £45.4bn (€67.6bn).

Barclays shares jumped 3%, or 22p, to 735.5p, while its bid rival Royal Bank of Scotland firmed 1p to 611p.

Among the fallers, the property sector was on the back foot today as fears over higher interest rates persisted.

British Land was off 35p at 1321p - a fall of more than 2% - while sector peers Segro, formerly Slough Estates, fell 8p to 580p. Land Securities was off 22p at 1751p.

Outside the top flight, Domino's Pizza shares rose by 2% - up 6.25p at 288.25p - after it said it was on track to beat expectations for full year profits, helped by new products and bad weather.

But engineering group FKI was off nearly 9% - or 11p - to 113p as talk of a potential offer for the business died down.