The FTSE continued its strong run on Monday, with resources stocks once again at the forefront of the rally.

The UK benchmark was 30.7 points, or 0.5 per cent, higher at 6,692.1 by late morning, after hitting 6,727 earlier in the day.

Mining stocks dominated the leaderboard as metals prices continued to strengthen, with copper up 1 per cent to $7,960 a tonne.

M&A activity also provided momentum as Xstrata offered $2.8bn for Jubilee Mines, Australia's fifth-biggest nickel producer. Xstrata rose 1.6 per cent to £35.84.

Of the of biggest risers, eight were miners, including Kazakhmys, up 2.2 per cent to £14.97, and Anglo American, 2.7 per cent higher at £33.32.

Resolution rose 0.5 per cent to 730p after it withdrew support for Standard Life's £4.92bn takeover offer, but has stopped short of agreeing to rival Hugh Osmond's £4.94bn hostile offer. The move put pressure on both predators to raise their bids.

The prospect of a bidding war in the sector also helped lift other insurance stocks. Aviva, the name behind the Norwich Union brand, was 1.8 per cent higher at 742½p and Prudential moved 1.2 per cent higher to 794p. Old Mutual was 1.1 per cent stronger at 180.1p.

Oil majors firmed as crude prices continued to break records, moving towards the $100 a barrel mark. With prices through $93 at $93.20, Royal Dutch Shell was 0.7 per cent higher at £21.36 and BP gained 0.8 per cent to 634p and Tullow Oil was 1.1 per cent stronger at 637.3p.

Of the fallers, worries about the progress of Delta Two proposed takeover of J Sainsbury dragged the grocer 2.3 per cent to 552½p. Delta Two said on Friday that it needed an extra £500m of equity.

Northern Rock lost a further 5.9 per cent to 179½p as the prospect of the various bids for the troubled bank prioritising debt-for-equity swaps over payouts to existing shareholders continued to pressure its stock.