However gains were limited as investors continued to watch developments in Iraq.

The FTSE 100 was trading 0.3% higher at 6,828 early on after hitting a one-week high of 6,808.11 the day before.

With things looking light on the economic data calendar, investors will likely keep a close on Iraq today after US President Barack Obama sent 300 military advisers to help Iraq’s government in its fight against Sunni militants.

Meanwhile, oil prices have remained at elevated levels as Islamist-led rebels continue to surround the Baiji oil refinery and Tal Afar airport in northern Iraq. Brent crude looks set to finish with its second weekly gain today amid supply concerns surrounding the OPEC producer.

Shire rebuffs AbbVie approach

Pharmaceutical group Shire rocketed 12% after the company rejected a £27bn takeover approach by AbbVie. AbbVie’s third and latest proposal represented an offer of 4,626p per share, a 34% premium to Shire’s closing price of 3,455p on May 29th.

Mining stocks were making gains this morning with precious metal producers Fresnillo, Randgold and African Barrick Gold rising strongly after gold prices hit a two-month high yesterday.

A later-than-usual start to Debenhams‘ summer sale meant that like-for-like sales at the high street department store took a knock in the third quarter. However, shares rose after the company said that its new strategy of reducing days on promotion has led to higher full-price sales and should help margins.

Drinks group Diageo was edging higher on reports that the company is near taking control of Indian liquor company United Spirits.

FTSE 100 – Risers
Shire Plc (SHP) 4,190.00p +12.09%
Fresnillo (FRES) 853.50p +2.22%
Smith & Nephew (SN.) 1,083.00p +1.69%
G4S (GFS) 265.70p +1.22%
Randgold Resources Ltd. (RRS) 4,786.00p +1.10%
Rio Tinto (RIO) 3,109.00p +0.94%
Aggreko (AGK) 1,618.00p +0.87%
ARM Holdings (ARM) 898.50p +0.84%
AstraZeneca (AZN) 4,481.50p +0.84%
InterContinental Hotels Group (IHG) 2,300.00p +0.83%

FTSE 100 – Fallers
Legal & General Group (LGEN) 223.90p -0.93%
Sainsbury (J) (SBRY) 318.90p -0.75%
Land Securities Group (LAND) 1,021.00p -0.68%
Centrica (CNA) 319.20p -0.68%
Sage Group (SGE) 388.60p -0.66%
Standard Chartered (STAN) 1,262.00p -0.59%
Rolls-Royce Holdings (RR.) 1,086.00p -0.55%
BG Group (BG.) 1,253.50p -0.52%
Tesco (TSCO) 289.40p -0.52%
Morrison (Wm) Supermarkets (MRW) 189.60p -0.47%

Source: ShareCast