Upbeat trading news from blue-chip companies helped drive the London market into positive territory today.

BAE Systems and VT Group were today reported to be close to completing a £1bn (€1.48bn) merger of their shipbuilding assets.

Investors were in bullish mood today as shares in London powered to their highest level for more than five years.

Shares in London powered to a new five-year high today amid heightened optimism in the City.

UK defence company BAE Systems defended its decision to sell its 20% stake in aircraft builder Airbus in the face of shareholder anger today.

Buyers deserted the London market today on fears that its recent rally had run out of steam and nervousness over the future path of US interest rates.

The London market slipped into the red today despite bid activity surrounding broadcaster ITV and a number of mid-cap stocks.

The appointment of a new chief executive at Compass continued to please investors today as the FTSE 100 Index stayed above the 6,000 threshold.

Engineering group Babcock added around £130m (€188m) to its value today as defence firms BAE Systems and VT Group considered a takeover bid which would reshape Britain's shipbuilding industry.

The merger of six UK naval shipyards has moved closer after an outline agreement was reached between the British government and defence group BAE Systems, it was reported today.

A late-afternoon rally by London shares failed to lift the FTSE 100 Index back above the 4400 barrier today.