Leading shares are heading higher after the Bank Holiday break, helped by a late recovery on Wall Street.
The FTSE 100 is up 65.37 points or 09% in early trading at 7302.05.
B&Q owner Kingfisher PLC LON:KGF) has edged up 0.69% after a mixed picture from its results.
Richard Hunter, head of markets at interactive investor, said: "Although pre-tax profits for the half are in line with expectations at £474mn, this figure represents a decline of 30% year-on-year.
"The immediate outlook is similar, with the company reporting a sales decline of 0.7% so far in the third quarter, although up by 15.2% on a three-year view. In addition, there has been continued demand for outdoor and big ticket items, while the company continues to tweak its overall offering to remain relevant and competitive.
"The question for investors is whether to compare this performance against pre-pandemic levels, where there has been significant progress, or against the strong comparatives of last year, where there has not.
"Despite an initial bounce in early trade, the share price reaction is a clear indication of the decision investors have made, with the price having fallen by 33% over the last year, as compared to a gain of 4.8% for the wider FTSE100."
HALEON PLC (LON:HLN) has fared better after its results, up 1.87%.
7.01am: US recovery set to lift London market
The FTSE 100 is expected to open higher this morning after gains in the US yesterday with investors awaiting interest rate decisions either side of the pond.
Spread betting companies are calling London’s blue-chip index - shut on Monday for the state funeral of Queen Elizabeth - up by around 35 points.
In the US the Dow finished Monday up 197 points, 0.6%, at 31,020, the Nasdaq Composite added 87 points, 0.8%, to 11,535 and the S&P 500 improved 27 points, 0.7%, to 3,900.
It was an up-and-down session for the benchmarks, but they managed to end a two-day slide a day before the Federal Reserve begins its meetings on Tuesday.
Michael Hewson, chief market analyst at CMC Markets UK, said: "Yesterday’s late rebound in the US looks set to translate into a positive start for European markets later this morning, however whether that can hold is likely to depend on the events of the next few days...
"This week’s central bank meetings are likely to be pivotal in the context of what comes next, starting with the Federal Reserve meeting which starts today, and concludes tomorrow, as well as the latest meetings from the Bank of Japan, Bank of England, and the Swiss National Bank...
"The main factor spooking markets right now is how much higher will rates have to go, and will there be any more profit warnings of the kind we got from FedEx (NYSE:NYSE:FDX) last week?"
In London, results from Haleon PLC and Kingfisher PLC are due.