The FTSE 100 has surged in afternoon trading - rising over 100 points - as hopes mount US politicians will agree a deal on the country's sprawling budget deficit.
UK shares had a shaky start to the week as negotiations over the US debt ceiling continue to drag on.
Aviva and Aberdeen Asset Management sat atop the FTSE 100 leaderboard on Thursday morning but the wider market remained subdued.
Supermarket giant Tesco led the FTSE 100 lower this morning after revealing its profits had dropped off sharply.
Tesco, the UK's biggest supermarket chain, has reported a drop in profits of 23.5% in the first half of its financial year.
The FTSE 100 index was in the red just after midday, dragged down by mining stocks which sold-off as oil and metals prices weakened.
The year-long stock market rally faltered over the summer, its progress derailed by concerns about the Federal Reserve's intentions to tighten monetary policy.
iShares has streamlined its European ETF range and significantly reduced fees on a range of funds following the acquisition of Credit Suisse's ETF arm earlier this year.