Banks lift FTSE 100
Financial stocks led the London market higher, as investors bet on the benefits of higher UK interest rates.
American investment bank Jefferies wrote a report saying that a hike in base rates would boost the earnings for Royal Bank of Scotland (RBOS) and Lloyds.
However, Pearson shares were the best performer on the FTSE 100 index, shooting up 3.94%.
It followed a bullish research note from Exane BNP Paribas commending the group on its restructuring.
At the close The FTSE 100 index was up 0.38% at 7313.51.
Oil traded near $52 a barrel after figures on US crude stockpiles showed an unexpected fall, the first decrease since Hurricane Harvey closed the refineries on the Texas coast last month.
Among the stock market losers WPP attracted most attention after Morgan Stanley downgraded the stock to "equal-weight" saying an early revival of confidence in the group's business model appeared unlikely.
The stock has lost about a quarter of its value since March due to the deterioration of its advertising outlook. It fell 1.2% during the session.
Among the small caps, shares in crisis-hit construction group Carillion jumped 20.1% on speculation of a pending takeover bid. Reports linked an unnamed Middle East company as a possible bidder.
On the FTSE 250, which rose 0.34% at 19,569.45 points, The hAA was the best performer up 5.8%, after fund manager Neil Woodford said he had increased his stake in the group. Its shares slumped over 12% on Tuesday following the news chief executive Bob MacKenzie had been sacked
On the Aim market, investors liked the taste of Hotel Chocolat's profits, sending the share price as high as 7% before it eased back to stand 2.9% higher.