Morning Markets Update: Cheerful updates restore confidence

UK markets retain earlier firmer levels, investor confidence restored by upbeat trading statements from both sides of the Atlantic.

By 10am the FTSE 100 index was up 41 points at 5,687 and the Mid-250 index 49 points higher at 10,876.

Oil shares were particularly favoured, helped by a weaker dollar and better-than-expected net income from Royal Dutch Shell, 17p higher at £19.95.

BP rose 5.85p to 425p and BG Group 5.5p to £11.87, while Premier Oil climbed 49p to £16.82 after being awarded five new licences in the UK

Mining stocks also benefited from currency factors with BHP Billiton 38p firmer at £22.

Among brighter banks and insurers Standard Chartered advanced 42.5p to £18.17, while Standard Life gained 3.8p to 227.43p as Panmure Gordon raised its target price to 240p from 225p.

AstraZeneca remained on offer at £31.73, down 72.5p, as generics hit revenue and an upbeat profits forecast failed to support Aggreko at £18.38, down 24p.

SVG Capital spurted 10p to 199p has net asset value increased by a fifth in the third quarter and Fidessa at £15.63 recouped 28p of its recent decline that followed a cautious trading update.

Mouchel retreated 31p to 96p in the wake of a 24% downturn in full-year profits, but a cautiously optimistic statement strengthened UK Coal 1.5p to 34p.

A profits warning cut 4p from DTZ Holdings at 44.5p.