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London's FTSE index moved up by 29.78 points, or 0.5 per cent, taking its gains for the year so far to 4.6 per cent, reports Reuters.
"Equities do look fairly attractive, giving good returns and there is therefore a fairly good incentive for pension funds and other investors," said Paul Mumford, senior fund manager at Cavendish Asset Management.
He added that positive data from global markets, coupled with solid trading statements and a mild improvement from the beleaguered banking sector, has assuaged the gloom surrounding the markets at the end of 2011.
Insurers' shares improved over the course of the day as they promised growth over the course of the year.
The FTSE improved yesterday after a merger between Glencore and Xstrata boosted mining stocks.
Posted by Clive Arneil
