FTSE 100, 250 gain on session

The equities markets were up in London on Tuesday, helped by new data that shows consumer confidence in the United States up more than had been expected in September. The FTSE 100 was 1.3 percent higher to 5,873.6, while the FTSE 250 gained 0.9 percent to 9,844.9. Mergers and acquisitions speculation was another driving force on the session.

In the steel sector, Corus added 3.6 percent to 377¼p on continuing talk about its pursuit of a low-cost steel slab producer in the BRIC (Brazil, Russia, India and China) region. Morgan Stanley recently said that such a deal could produce a 100p per hike in Corus’ share prices.

Other bids rumors sent Scottish Power up 3 percent to 634p as rumors spread that Eon could bid for the utility if its effort to buy Endsea doesn’t work out. In the airlines sector, rumors that British Airways is in merger talks with Iberia sent BA 0.6 percent higher to 429p.B

Plumber and building materials group Wolseley gained 4.1 percent to £11.39 on a better than expected full-year report. Elsewhere in the sector, building materials supplier Hanson added 6.2 percent to 730p as rumors continued that Cemex is preparing a bid.

Among miners, Rio Tinto gained 3.5 percent to £24.34 on talk that it will propose an off-market buyback of London-traded shares for £25 per share.

Emap added 2.6 percent to 741p after the publisher received an upgrade to “buy” from Goldman Sachs.

Among losers on the session, BSkyB was 1.3 percent lower to 542p on talk that one of its brokers had been informed that its forecasts were too high by 10 percent. BSkyB denied the rumors.