FTSE rejuvenated by collection of strong earnings reports

The UK’s blue-chip index has been ushered higher during the opening hours of today’s session, backed by a series of positive earnings reports with a number of firms releasing quarterly updates this morning.

At 10:00BST, the FTSE 100 is 0.7 per cent up with a gain of 37 points to reach 5,356.28 thanks to trading updates from no less than seven groups in the UK’s top index.

One of those groups is printing and publishing giant Reed Elsevier (LON:REL). The group announced today that sales rose higher than predicted in the first half of the year – up one per cent.

Investors would have been given a boost by the company’s suggestions that advertising was stabilising – the biggest issue that’s hampering print media – and the promotions market had also picked up. The share price is up over 23p this morning with a gain of 4.4 per cent.

Closely following is AstraZeneca (LON:AZN) with the drug maker gaining by over four per cent as well after it released an earnings report today, too.

The group announced a profit before tax of $6.4bn – 14 per cent higher than the $5.6bn figure for the same period in 2009.

As well as a profit increase, investor sentiment was bolstered by the confirmation that the firm’s Brilinta treatment for blood clots had been granted FDA approval and it wasn’t looking to make any big new acquisitions to the company, focussing on returning capital to investors instead.

Defence contractor, BAE Systems (LON:BA), reported a 14 per cent rise in interim earnings of £1.1bn, pushing the share price over 2.5 per cent higher. The report also claimed the group would be streamlining its workforce due to government spending cuts, especially in the defence market in the UK. However, outsourced work is remaining fruitful with India putting in an order for a batch of 57 Hawk fighter jets this week, it was reported.

Also posting strong gains off the back of a trading update is Rolls-Royce Group (LON:RR). Shares have been over two per cent up during today’s session after the group announced a forecast-beating interim profit with its marine unit being the biggest contributor to the gains. Underlying profit gained £20m on the same period last year to reach £465m and the company directors left investors with a positive outlook saying it expects annual profit to show a modest year-on-year improvement.

Heading the FTSE 100 fallers is drinks can maker Rexam (LON:REX) which continues to post losses after it was reported yesterday the group is trading ex-dividend. The share price is down 11p, or 3.4 per cent after a substantial share price decline yesterday losing over 10p.

Tulow Oil (LON:TLW) has also dropped into the FTSE 100 fallers after producing good gains earlier in the week on the back of the announcement that it had discovered oil off the shored of Ghana.

Banking stocks made stable gains with Royal Bank of Scotland (LON:RBS), Lloyds Banking Group (LON:LLOY), Barclays (LON:BARC) and HSBC Holdings (LON:HSBA) all up between 0.2 and 0.8 per cent.

The mining sector is also posting comfortable gains as a whole with Anglo American (LON:AAL), Xstrata (LON:XTA) and BHP Bilton (LON:BLT) being the three main players in the sector advancing.

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