Markets calm after the storm

Markets calm after the storm

A slew of solid earnings and a rebound on Wall Street helped the FTSE 100 edge higher in early trading on Thursday, but markets remained jittery following two days of steep losses.

The index of leading London-listed shares was up 25.2 points, or 0.4%, 6196.7 early on. That follows a sell-off of almost 2% in the prior session against a backdrop of global growth concerns and nervousness in particular abour the US outlook.

There was some comfort for equity investors overnight, however, as US Federal Reserve chairman Ben Bernanke reiterated the US central bank's view of "moderate growth going forward".

That calmed nerves and lifted the Dow out of the red.

Back in ther UK, Royal Bank of Scotland, British American Tobacco and Reuters all helped drive the FTSE 100 higher with solid results.

Advertisement starts

---

---

Advertisement ends

RBS rose 66p to £20.75 after it reported record profits and reassured investors it continues to avoid the damaging level of bad debts that have hurt its rivals.

Lucky Strike maker BAT added 52p to £16.01 after after it pledged to ramp up its share buyback programme and raise its dividend.

News and information group Reuters cheered investors with an upbeat outlook and climbed 14.25p to 450p.

But results day did not go so well for Aviva, as the insurers shares slipped 9p to 809p after it failed to provide any upside surprises to the market.

Back among the risers, J Sainsbury resumed its upward march thanks to the news that Marks & Spencer was seriously considering a bid for the grocer. Marks & Spencer said this morning that it had mulled a tie-up with the supermarket but "it does not intend to make an offer for Sainsbury at this time".

The shares were up 13p to 524.25p in early trading.

The FTSE 100's gains were mirrored across Europe, where more solid earnings reports helped calm shaken nerves.

Guardian Unlimited © Guardian News and Media Limited 2006