FTSE inches higher after positive US figures

Strong corporate earnings figures in the US boosted markets today but the UK's slide back into recession left London's leading shares index with only lacklustre gains.

Big US names including Apple and Boeing reported better than expected results and encouraged investors to return to markets after Monday's sell-off, while there were also hopes that the Federal Reserve would hint at more quantitative easing.

The Dow Jones Industrial Average was up 0.6% as the London market closed, while markets in France and Germany were up about 2%, but the FTSE 100 Index was just 9.4 points higher at 5718.9.

Sentiment in the UK was knocked after shock preliminary figures showed the UK economy contracted by 0.2% in the first quarter of 2012 - below City forecasts for 0.1% growth and triggering a return to recession.

The weak GDP figures hit the pound on currency markets and prompted speculation that the Bank of England could restart its quantitative easing programme. Sterling was down at 1.22 against the euro, but flat with the dollar at 1.61.

Heavily weighted miners were among the biggest risers, with Vedanta ahead 50p at 1225p, and Glencore up 13.5p at 429.2p.

Chip designer Arm Holdings was ahead as better than expected sales of iPhones by major customer Apple helped its shares recover from yesterday's heavy selling. They were up 1% or 6p to 537.5p.

In corporate news, shares in drugs giant GlaxoSmithKline were down by more than 3% after results for the first quarter of 2012 came in short of expectations.

While the company announced a 6% rise in its dividend and said the outlook for sales growth was unchanged, investors were focused on near flat growth in core operating profits at £2.07bn (€2.53bn) in the quarter.

Shares fell 44p to 1413.5p but rival AstraZeneca was more resilient as the stock was up 3.5p to 2841p.

Elsewhere, Mr Kipling and Hovis owner Premier Foods saw its shares fall despite reporting a 3.7% rise in sales for its eight leading brands over the last quarter.

Sales of its 'support' brands, such as Branston Pickle and Homepride sauces, fell 0.5% but one leading analyst described the update as "reassuring" after the firm's recent struggles under the weight of its debt mountain.

Shares fell 5%, or 0.8p to 15.8p.

And Sports Direct International, which has proved a darling of the retail sector in recent months, maintained its strong sales run, with revenues up 13.2% to £267.6m (€327.7m)in the nine weeks to March 25.

Panmure Gordon stockbrokers said the latest figures were excellent, driven by strong website business and its staff incentive scheme. Shares were 6p higher at 291p.

The biggest Footsie risers were Vedanta up 50p at 1225p, International Consolidated Airlines Group ahead 5.6p at 174.1p, Glencore up 13.5p at 429.2p, and BAE Systems ahead 9p at 300.3p.

The biggest Footsie fallers were Centrica down 12.3p at 310.2p, GlaxoSmithKline off 44p at 1413.5p, Tesco down 8.5p at 317p, and Reed Elsevier off 13.5p at 512.5p.