The FTSE 100 is being spurred forwards by Cadbury this morning on news the British chocolate maker has received a £10.2bn takeover approach from US goods giant Kraft.
A revival in appetite for UK mining firms, spurred by a rebound in metal prices, helped to push up the UK's benchmark index in early exchanges.
UK blue chip shares fell following the Bank Holiday weekend as investors locked in profits from miners.
Firmer commodity prices lifted mining stocks and led the FTSE higher on Friday following two sessions of losses.
The FTSE 100 has opened lower this morning as investor confidence was dented by weaker Asian markets overnight and a flat US session on Monday.
The UK's leading share index powered to a new year high on fresh hopes that an economic recovery in on the cards.
The FTSE 100 has bounced back over 4,700 for the first time since opening this week, with mining stocks at the forefront of today's strong gains.
The FTSE 100 fell sharply on opening this morning, with another poor day in Asia cancelling out yesterday's gains for London's blue chip index.
The Dow Jones was rapidly approaching a 2% drop in early trading on Monday on fears the recent rally may have been overdone.
London's blue-chip index has suffered a poor start to the week after sharp stock falls in Asia today, with property groups and miners among the early decliners.