Sharecast - At 0900 GMT, the FTSE 100 was up 0.1% at 7,852.38.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown (LON:HRGV), said: "The attractiveness of the FTSE 100 is undimmed, with the index set to flirt again with record highs in early trade. The record closing high of 7,877 is in reach, and another surge in buying could see stocks surpass the best level of 7903, seen on May 22, 2018.
"Hopes that inflation will keep descending from its peak in the US, after encouraging data last week, saw Wall Street end on a Friday high, with positive vibes spilling over to Monday trades in Asia.
"With British consumers flexing their spending muscle over the Christmas period and the country looking more likely to have escaped falling into recession in 2022, the waves of optimism have been lapping over the London market.
"Investors appear to have fallen back in love with UK assets, after a difficult period when FTSE 100 was the wallflower among global indices. Confidence has rebounded as investors eye up China’s reopening, helping commodity stocks. A stronger than expected appetite from consumers has boosted the retail, travel and hospitality sectors, while banks are still riding the wave of higher interest rates."
In corporate news, Qinetiq ticked up after saying it had won an £80m contract with the UK's Ministry of Defence (MOD).
Marks & Spencer was in the black after it announced the opening of 20 new stores and the creation of 3,400 jobs.
Ashmore fell even as it posted a 2% rise in second-quarter assets under management to $57.2bn, with the investment manager hailing a strong performance from emerging markets.
Healthcare property investor and developer Assura was also weaker after a trading update.
Outside the FTSE 350, guarantor lender Amigo tumbled after saying it had failed to secure a commitment from a cornerstone investor to underwrite the whole of its £45m capital raise and that it is now looking for a syndicate of investors.
Market Movers
FTSE 100 (UKX) 7,851.43 0.09%
FTSE 250 (MCX) 19,962.97 0.05%
techMARK (TASX) 4,535.75 -0.06%
FTSE 100 - Risers
Halma (LON:HLMA) 2,153.00p 1.32%
Taylor Wimpey (LON:TW.) 116.10p 1.18%
International Consolidated Airlines Group (LON:ICAG) SA (CDI) (IAG) 158.90p 1.00%
London Stock Exchange Group (LON:LSEG) 7,518.00p 0.99%
Associated British Foods (LON:ABF) 1,811.00p 0.89%
Persimmon (LON:PSN) 1,427.00p 0.78%
Sainsbury (J) (SBRY) 242.80p 0.75%
Prudential (LON:PRU) 1,302.00p 0.70%
Intertek Group (LON:ITRK) 4,308.00p 0.65%
HSBC Holdings (LON:HSBA) 595.00p 0.64%
FTSE 100 - Fallers
Rolls-Royce Holdings (LON:RR.) 106.84p -1.77%
Johnson Matthey (LON:JMAT) 2,179.00p -1.76%
Flutter Entertainment (CDI) (FLTR) 12,270.00p -1.60%
Rio Tinto (LON:RIO) 6,138.00p -1.30%
Admiral Group (LON:ADML) (ADM) 2,158.00p -1.19%
Compass Group (LON:CPG) 1,903.50p -1.14%
Severn Trent (LON:SVT) 2,737.00p -0.94%
Airtel Africa (AAF) 117.30p -0.85%
Entain (LON:ENT) 1,438.00p -0.83%
Anglo American (LON:AAL) 3,540.50p -0.77%
FTSE 250 - Risers
Ascential (ASCL) 220.20p 6.07%
888 Holdings (DI) (LON:888) 93.85p 5.15%
BBGI Global Infrastructure S.A. NPV (DI) (BBGI) 163.00p 2.52%
GCP Infrastructure Investments Ltd (GCP) 102.00p 2.00%
Hipgnosis Songs Fund Limited NPV (SONG) 89.10p 1.95%
Man Group (EMG) 233.40p 1.92%
Blackrock (NYSE:BLK) Throgmorton Trust (THRG) 635.00p 1.76%
Fidelity China Special Situations (LON:FCSS) 289.50p 1.40%
International Public Partnerships Ltd. (INPP) 160.40p 1.39%
The Renewables Infrastructure Group Limited (TRIG) 132.00p 1.38%
FTSE 250 - Fallers
Aston Martin Lagonda Global Holdings (AML) 163.60p -4.33%
Marshalls (MSLH) 309.60p -4.09%
Quilter (QLT) 101.25p -2.32%
Barr (A.G.) (BAG) 537.00p -2.01%
Centamin (DI) (LON:CEY) 120.65p -1.99%
Rotork (LON:ROR) 327.40p -1.92%
Ashmore Group (ASHM) 266.60p -1.84%
Assura (AGR) 56.35p -1.74%
Investec (INVP) 531.60p -1.45%
Abrdn Private Equity Opportunities Trust (APEO) 423.00p -1.40%