Prudential is among the leading risers as the market gets off to a slightly calmer start to the week after all the recent volatility.
The insurer's shares are up 10p to 527p, lifted by news that its directors are ready to back its massive rights issue with their own cash. The prospectus accompanying the £14.5bn cash call seemed to indicate the directors might not dip into their own pockets - hardly a sign of confidence - to take up their rights. But now it appears they have been telling shareholders they will find the necessary £9.5m.
The cash call, of course, is needed to fund the proposed £24bn deal to buy AIG's Asian business, a move which has not received unanimous approval. There has been talk Pru might try to reduce the price, and suggestions the US government had revived plans to float the Asian operations if the deal falls through. Many believe Pru's shares would soar if this happens, not least because it could then be vulnerable to a break-up bid.
Overall the market has shaken off an overnight dip on the Nikkei 225 and the Spanish government's rescue of a regional mortgage bank, preferring to take its cue from Wall Street's gains on Friday. The FTSE 100 is currently 8.10 points higher at 5071.03, but the mood is fairly fragile, and it would not take much for the jitters about Europe to suddenly become more serious again.
Travel companies seem to be benefitting from the British Airways' strike, perhaps on the basis holidaymakers will change their bookings. Tui Travel is up 5p at 234p while Thomas Cook has climbed 3p to 203.8p. BA itself has edged up 1.6p to 190.1p.
Elsewhere more bad news on the oil spill and its associated costs has pushed BP 6.2p lower to 500.5p but the FTSE 100's biggest loser is Capita, down 13p to 786p on concerns that the government's spending cuts could impact the outsourcing group and its profit margins.
