London open: Stocks gain as deal news boosts sentiment

London stocks rose in early trade on Monday, with deal news boosting sentiment.

At 0830 BST, the FTSE 100 was up 0.5% at 7,912.86.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Cautious optimism is the Monday motivation mantra, as stronger US corporate news and signs of consumer resilience help to mask ongoing worries about the knock-on effect of higher interest rates."

In equity markets, Network International rocketed after the payments firm said it has received a non-binding proposal from a consortium of CVC and Francisco Partners about a cash offer of 387p a share. Network said that having "carefully evaluated" the proposal with its financial advisers, it was minded to recommend it should a firm intention to make an offer be announced.

Wood Group also surged as the oil and gas engineering firm said it had decided to engage with US private equity group Apollo to see if a firm offer can be made on a potential £1.66bn takeover. Wood has rejected four proposals from Apollo but has now decided to grant access to documents for due diligence after a fifth approach at 240p a share.

International Distribution Services rose after it emerged over the weekend that Royal Mail and the Communication Workers Union had reached an agreement on pay and employment terms.

Qinetiq rallied as it lifted its full-year guidance following an "impressive" fourth-quarter performance.

In terms of sectors, heavily-weighted miners were the best performers, with Anglo American, Rio, Antofagasta and Glencore all trading up.

Outside the FTSE 350, Quiz shares tumbled after the fashion retailer struck a cautious note on the outlook, warning that inflationary pressures were denting consumer demand.