The FTSE 100 Index has moved ahead by 26.2 points to reach 4265.2 by lunchtime, as investors stepped back into the market.
Market watchers said prospects were also looking much better in the US, with the opening call for the Dow Jones Industrial Average improving significantly as the session wore on.
In London, Reuters topped the Footsie risers board - up 4% or 9.25p to 243.75p - after reporting group revenues for the three months to 30 September of £789 million, down 8% on 2002 but up on expectations.
Not far behind was Sage which put on 6.25p at 176p after UBS upgraded the stock to a neutral from reduce rating. It said expectations of the group's management in Europe now seemed less demanding.
And Cadbury Schweppes was also making progress after announcing plans to axe 10% of its 55,000-strong global workforce and 20% of its 133 factories. Shares in the group are up 7.5p to 399p.
But Barclays was among the main top-flight fallers as speculation over a potential takeover bid from Bank of America receded after it announced that it is to merge with rival FleetBoston Financial.
Meanwhile, Barclays was on the acquisition trail itself in a £210 million expansion in the wealth management sector with the acquisition of stockbroker Gerrard. Barclays shares were off 4.5p at 501.25p.
Other banking stocks put in a more positive showing, with HBOS recovering from an early dip to sit 4p higher at 697.5p and HSBC up 7p at 851.5p. Meanwhile Royal Bank of Scotland was unchanged at 1582p.
Ripples from the turmoil among Russian shares after the arrest of the country's richest man Mikhail Khodorkovsky were felt among investors in BP, which has a substantial interest in the country. Shares were off 3p at 410.5p.
Elsewhere investors did not seem overly concerned about news of a future court battle between building materials group Hanson and the state of California over royalties from sand dredging. Shares were off just 0.75p at 403p.
PA