Leading shares have moved higher in early trading, but dealers are anticipating a nervous time with UK GDP figures out shortly and the results of the European banking stress tests later.
The FTSE 100 is currently up 10.08 points at 5313.89, with miners among the main gainers and Vodafone 2.7p higher at 151.75p after its results. Good economic news, including UK retail sales, and reasonable US corporate news - especially from technology companies - has helped sentiment. But Manoj Ladwa, senior trader at ETX Capital said:
Volatility could be the order of the day with GDP figures out later this morning and EU stress test results after the market closes.
The pound has risen 0.3% against the dollar while the euro fell 0.4% ahead of the growth figures. Analysts are expecting a quarterly rise of around 0.6%, which could calm nerves about the prospect of a double dip recession.
United Utilities is up 3p at 567p after an upbeat trading statement, despite revenue and cost pressures due to the 2009 price review and the general economic situation. The company said it was assessing expressions of interest for its non-regulated businesses, and would monitor its hosepipe ban, especially in the light of recent rainfall.
Smith and Nephew fell 10p to 560p in the wake of this week's placing of 8m shares. Banks were mixed ahead of the stress tests, with Barclays up 1.35p to 305p and Royal Bank of Scotland 0.58p better at 45.28p and Lloyds Banking Group 0.68p lower at 62.9p.
After the recent spate of takeovers, traders were looking for the next targets - across a wide range of sectors - with Burberry, 15p higher at 871p, and Invensys, 2.6p better at 297.6p, both mentioned.
