London shares edge higher

London shares edged higher in midmorning trades, underpinned by another positive session on Wall Street last night, and fuelled by a resurgence of interest in technology stocks following Dell's Q2 figures overnight, dealers said.

At 10.23 am the FTSE 100 index was up 37.4 points at 4,365.3, with the rest of the broader indices also moving higher.

Volumes had picked up considerably, with 459.9 million shares changing hands in 34,947 deals, swollen by heavy trading in telecom stocks.

Overnight on Wall Street, the DJIA rallied late in the session to close 74.83 points higher at 8818.14, rebounding off its intra-day low of 8687.92, while the Nasdaq climbed a further 10.71 points to 1345.01.

Stocks had dipped lower in early afternoon trading after the release of a surprisingly weak Philadelphia Fed index.

In Asia, the Hang Seng ended the morning session down 6.17 points at 10,213.54, while the Nikkei 225 index closed down 7.44 points at 9,788.13.

With no UK economic data scheduled for release today, investors' attention will be once again drawn across the Atlantic, where the release of US July CPI figures, July housing starts and the preliminary Michigan sentiment should provide further clues as to the economic health of America.

On the corporate front, technology stocks continued to ascend at midmorning following strong after-hours gains by Dell, which reported better than expected Q2 earnings and raised its guidance for Q3 last night.

Positive analyst comment also boosted the PC sector, after Lehman Brothers analyst Dan Niles issued his first positive broker note for some time, upgrading Hewlett Packard - albeit to 'equal weight' from 'underweight'.

News of the resignation of Schroders' star analyst Jack Grubman - best know for his controversial affiliation with Worldcom - will also ensure the sector stays in focus today.

Vodafone, up 0-3/4 pence to 98-1/4, remained in focus after the Financial Times reported that the future of Vizzavi, the internet joint venture between Vodafone and Vivendi Universal, has been put in doubt by the French media group's decision to halt further investment in the London-based business.

Also La Tribune reported that Vodafone has offered Vivendi Universal 4.7 billion euro for its 44% stake in French telecoms group Cegetel, owner of 80% of France's number two mobile operator, SFR.

Dresdner Kleinwort repeated its 'add' recommendation on the stock this morning.