The FTSE 100 index is hovering just below 15-month highs, buoyed by strong UK and U.S. economic data, with broadcaster Granada leading the way higher with a 5.5 per cent jump.
News that Granada and Carlton almost doubled the cost savings target from their planned merger powered shares in both firms, with Carlton bouncing 5.2 per cent .
An upward revision in UK economic growth followed powerful gains in U.S. GDP growth and news of rising U.S. consumer confidence on Tuesday, lighting a fire under banks and other economy-sensitive stocks.
By 12:12 p.m. on Wednesday the FTSE 100 index was up 19.9 points to 4,408.6, having earlier hit 4,423.6, its highest level since August 2002.
Traders said the market was settling to wait for a fresh wave of U.S. data starting with durable goods and jobless numbers at 1:30 p.m., although the full extent of Wall Street's response could be muffled by Thursday's Thanksgiving holiday.
"We've got loads of U.S. figures today and then Wall Street's closed, so I suspect that if these numbers are half good this afternoon we probably won't get a real reaction until Monday. I think people are winding down already ahead of Thanksgiving," said a trader.
"It will be interesting to see what happens tonight, because we seem to claw our way above 4,400 and then give it all back again," the trader added.
Banks added seven points to the FTSE, with HBOS and Lloyds TSB both up by around two per cent .
Spirits giant Diageo added 1.2 per cent after upbeat results and comments from U.S. rival Brown-Forman
A number of shares traded ex-dividend, taking a combined seven points off the FTSE 100 index, including supermarkets group J. Sainsbury down 3.3 per cent , National Grid down 2.7 per cent , and mobile phone heavyweight Vodafone off 0.7 per cent .