Markets Update: Firmer trend holds, but trading subdued ahead of Fed meeting

A clutch of mainly favourable trading statements and evidence that global manufacturing is making headway keep share prices on a rising path, but caution prevails ahead of tomorrow's Federal Reserve update on monetary easing.

By 10am the FTSE 100 index was holding a rise of 44 points at 5,738 while the Mid-250 index had picked up 12 points to 10,888.

BG Group headed the list of major risers with a jump of 28p to £12.37 after beating consensus forecasts by 15%.

Investors took a positive view of very mixed BP figures, the shares improving 7p to 431p, while the strength of the crude price underpinned oils generally.

Royal Dutch Shell gained 23p to £20.67, helped by a positive note from ING.

Cheerful profits news, both new and recent, sustained Aviva at 404p, Weir Group £15.60, British Airways 272p, Imperial Tobacco £20.26 and Reckitt Benckiser £35.75, up 4p to 50p.

Lloyds Bank shed 0.88p to 68.7p in spite of upbeat broker notes after the figures.

Serco Group suffered a fresh fall of 27p to 560p on its U-turn on its demand for a cash rebate from suppliers, with Capita Group down 14p to 755p in sympathy.

A confident outlook failed to support Mears Group at 290.5p, down 10p and Tribal Group tumbled 14p to 44p on the collapse of offer talks.

Desire Petroleum rallied 9p to 101p on its plans to drill another well on the Rachel project.

Findel declined 1.5p to 15p as contract delays hit profits and losses clipped a penny from Endace at 240.5p.

US gaming licence uncertainties unsettled PartyGaming at 242p, down 11p and cautious press comment prompted profit-taking in Hikma Pharma at 788p, down 8p.