International Power was the strongest riser in early morning trading, increasing by 3.9 per cent to 380.8p.

The company - which has been rated as a ‘buy’ by The Share Centre ahead of this week's interim results  - saw share price rise on media speculation that a proposed merger with GDF Suez was near completion.

Talks between the two companies were revealed last month, a combination would result in an enlarged International Power, with GDF Suez becoming the major shareholder.

Barclays and miner Lonmin both rose by 2.8 per cent to 333.8p and 1,601p, respectively.

The mining group - which has been ordered to stop the sale of non-platinum metals by the South African government - rose on speculation it could emerge as a takeover target for Xstrata, which has previously expressed interest in the group.

Life insurance groups Legal & General and Prudential both rose 2.7 per cent to 89.45p and 587p, respectively.

Bunzl was the only faller in early morning trading, dropping by 0.5 per cent to 685p.