FTSE LIVE: US Fed eyed for future interest rate signals

FTSE LIVE: US Fed eyed for interest rate signals; WH Smith rises on sales update

9.15: The FTSE 100 is ahead 11.3 points at 5,763.2 as strong results from iPhone maker Apple deflected attention from the UK's recession fears and worries over the impasse in Greek debt negotiations.

The U.S. tech giant smashed expectations with a doubling in its net profit to $13.06billion (8.4 billion) in the last quarter of 1011.

Asian markets were higher, with the Nikkei 225 gaining by more than 1 per cent following the news.

Rate watch: The US Federal Reserve is set to release interest rate forecasts to markets following its latest meeting

'Very rarely will a single stock have such control on sentiment, but the numbers from Apple seem to have arrested the declining goodwill towards a Greek debt swap,' said Chris Weston, institutional trader at IG Markets.

'It’s hard to paint the numbers as anything but blowout, and clearly despite reasonably elevated expectations, they simply took consensus down to the woodshed and chopped it apart.'

Chip designer Arm Holdings posted one of the biggest rises in London today – up 4 per cent or 22.75p to 602.7p – as many of its products are featured in Apple devices. Smaller firm Imagination Technologies was also 21p higher at 573p.

Shares in retailer WH Smith were 4 per cent higher as it said that its profitability had not been dented in the tough trading conditions.

Same-store revenues were down by 6 per cent on the high street in the 21 weeks to January 21 but with margins showing improvement the stock improved by 20p to 52p.

Other retailers on the front foot included Halfords, which added 18.4p to 326.6p, while Marks & Spencer was 4.3p higher at 335.4p.

Traders are also preoccupied by pending UK GDP figures for the fourth quarter of 2011 and a U.S. Federal Reserve meeting which will signal policymakers' future interest rate expectations.

8.20:

The FTSE 100 has opened on an upbeat note, trading some 17.1 points higher at 5,769.

On the continent, Germany's DAX is ahead 28.3 points at 6,447.5 and France's CAC 40 is up 15.8 points at 3,338.5

Preview: The FTSE 100 index is forecast to open 15-18 points higher, supported by
stellar results from consumer technology bellwether Apple and hopes that the U.S. Federal Reserve will signal a continued
period of interest rates near zero.

The U.S. Federal Open Market Committee is expected to release forecasts
showing interest rates will remain at rock bottom for at least two more
years, and to leave the door open to further bond purchases if Europe's
banking problems spill over into the U.S.

The FOMC will announce its interest rate decision after the European
markets close, with no change expected to the U.S. central bank's 0.25
percent rate.

Trading in Asia was upbeat overnight, with the MSCI's broadest index of Asia-Pacific shares outside Japan rising 0.8 percent.

Concerns about a possible disorderly default in Greece are expected to keep gains in check today as Athens' debt swap talks with its creditors have yet to come to a definite outcome and the country faces the threat of its ratings being cut to 'selective default' by Standard & Poor's.

On the economic front, the Office for National Statistics is due to release fourth-quarter GDP figures later. The British economy is expected to have shrunk 0.1 per cent in the final three months of 2011, compared with a 0.6 per cent growth rate in the previous quarter.

Meanwhile, the Bank of England will publish minutes from the January Monetary Policy Committee meeting, which were expected to show members were unanimous in deciding to keep rates unchanged.

The Confederation of British Industry will release its industrial trends survey for January later. The total order book balance is expected to have risen to -20 from -23 in December.

Compass Group and SSE are the only blue-chip companies to go ex-dividend today, clipping 1.79 points off the FTSE 100 index.

Stocks to watch today include:

Charles Taylor, Tawa: Franois-Henri Pinault is mulling a 100million bid to merge his AIM-listed Tawa with rival Charles Taylor, The Telegraph reported.

WH Smith: The newspapers, books and stationery retailer issues a trading update and holds its annual general meeting.

Britvic: The soft drinks maker issues a trading update and holds its annual shareholder meeting.

Renishaw: The precision engineer reports first-half results.

BTG: The pharmaceutical firm issues a trading update.

GW Pharmaceuticals: The pharmaceutical company holds its annual general meeting.

Ebiquity: The marketing firm reports first-half results.

Aberforth Smaller Companies Trust: The investment fund reports its prelimary results.

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FTSE LIVE: US Fed eyed for future interest rate signals