(Reuters) - Gains in mining company shares due to a rise in China's iron ore prices pushed London's main stock market index higher on Tuesday, while those in construction firm Galliford jumped after it rejected an offer for two housing businesses.
The FTSE 100 rose 0.3% while the mid-cap FTSE 250 inched up 0.1% by 0707 GMT.
China's iron ore prices have hit record highs this week amid rising concerns of over supply due to shrinking stocks and worries about another Brazil mine dam at risk of collapsing.
Rio Tinto, BHP and Antofagasta were among the top boosts to the main FTSE index.
Share of mid-cap builder Galliford, one of those to have suffered from the collapse of major government contractor Carillion last year, surged 8% after news emerged of a rebuffed offer for two of its units from Bovis Homes.
Shares of Bovis, which said it was "no longer in talks" over the purchases, were roughly flat.
Tour operator Thomas Cook, hammered last week by worries over its cashflow and summer sales, advanced 7.8% after Berenberg raised its rating to "hold" from "sell", citing the bids the company has said it has received for its airline unit.
(Reporting by Shashwat Awasthi in Bengaluru; editing by Patrick Graham)
