FTSE opens higher after solid start to US earnings season

Shares in the FTSE 100 were rising again in morning deals after a positive start to the US corporate earnings season 

The FTSE 100 added 37 points, or 0.7%, to 5204 as recent fears about the pace of the economic recovery fade.

The DJIA closed 18.2 points higher at 10,216 and is expected to rise again today, adding to its longest winning streak in over a year. Better than expected results from Alcoa after the close are adding to the optimism that corporate earnings could lift shares over the coming weeks.

The wider S&P 500 was also higher 0.07 points, or 0.79% at 1,078.

The pound will also be in focus after a volatile session on Monday. Worse than expected current account data and disappointing GDP data saw sterling weaken in the morning.

Towards the end of the day credit ratings agency Standard and Poors said the UK had kept its triple AAA rating for now but said the country is still on negative watch due to its concerns that growth projections are too optimistic and planned spending cuts may not be achieved.

Inflation data later is expected to show a fall back to 3.2% from 3.4%. That would add support to claims by the Bank of England that high inflation was temporary and is on track to fall back to the 2% target.

Anything higher will likely lead to more calls for interest rate increases this year

In corporate news, BP is the top gainer again as the group said a new cap had successfully been placed on the leaking well in the Gulf of Mexico. Ongoing bid hopes are also lifting shares 15p to 414p.