Market Update: Shares reverse early falls after evidence global recovery is on track

Share prices are reversing early falls as investors draw comfort from a 50% surge in Chinese exports last month and optimistic comments on the US economy from Fed chairman Ben Bernanke.

BP remained the most active counter at 372p, down 18p, after hitting an early 13-year low of 348p as the American government demanded the oil giant to cover all costs stemming from the environmental disaster in the Gulf of Mexico.

Oils generally were overshadowed by BP's oil spill saga with Royal Dutch Shell off 15p to £17.55 and Tullow 7p lower at £11.13.

By 10am the FTSE 100 index was 10 points firmer at 5,096 and the Mid-250 index was 40 points higher at 9,527.

Miners led the recovery on the Chinese exports surge with Fresnillo at £10.12, Eurasian Natural Resources £10.09 and Xstrata 981.4p, up 19p to 29p.

ARM Holdings attracted speculative interest at 293p, up 19p and yesterday's upbeat trading statement continued to bolster Aggreko at £14.76, up 41p.

International Power edged up 2p to 294p amid renewed speculation of a bid from GDF Suez.

Favourable presentations in the US underpinned Intercontinental Hotels at £11.37, up 28p, and other leading 'blue chips' to find favour included Burberry at 764.5p, Autonomy £18.86, Wolseley £15.97 and Serco 632.5p, up between 13p and 33p.

Food retailers gave ground with Tesco 2.45p adrift at 400p, still suffering from the surprise resignation of chief executive Sir Terry Leahy.

Carpetright recovered 16p to 683p, helped by a rating upgrade from UBS and upbeat profits news benefited Halfords at 532.5p and Premier Farnell 348p, up 33p and 29p.

A rating upgrade from RBS sustained ITV at 53.85p, up 1.10p and Misys improved 4p to 253p on further reaction to yesterday's stake sale in Allscripts.

A positive outlook outweighed the 16% fall in full-year profits at Wincanton, up 2p at 227.75p and Hargreaves Services added 10p to 645p as it pulled out of bid talks with UK Coal.