A positive start to trading on Wall Street safeguarded gains on the London market today as investors cheered signs of a revival in deal activity.

Signs of a revival in major deal activity encouraged investors today after a difficult few sessions for world markets.

British industrial firm Tomkins is in talks over a potential £2.9bn (€3.43bn) takeover, it was revealed today.

Australian national carrier Qantas Airways said today it had accepted a €6.7bn takeover offer from a private equity consortium including the country’s Macquarie Bank and the Texas Pacific Group.