Morning markets: FTSE rises on mergers and miners

Early gains among financials and miners helped boost the FTSE up 27.43 points (0.50%) to 5482.80 in early trading.

London Stock Exchange Group gained 2.19% to 700p a share, followed by Lloyds Banking Group, which rose 1.76% to 57.78p. Miners Randgold Resources and Kazakhmys also performed well, rising 1.49% to 5110p and 1.35% to 1429p respectively.

Meanwhile, International Power made the biggest gains of 4.97% to 338p following reports French power giant GDF Suez has made a takeover approach to the group.

IT firms took a tumble with satellite provider Inmarsat making the biggest losses down 1.69% to 670.50p a share. Aerospace and defence technology provider Cobham fell 0.92% to 236.80p a share and BAE Systems dropped by 0.43% to 366.40p.

In Japan, the Nikkei fell 1.2% on the back of JPMorgan's cautious outlook and a steep rise in fourth quarter loan losses. Shares in the troubled carrier Japan Airlines have plunged to a record low of 5 yen (6 cents, 3 pence) ahead of an expected bankruptcy filing.

In the US, the Dow dropped 100 points to 10.578 on Friday in the wake of JP Morgan's fourth quarter figures, which beat forecasts but contained cautious comments about the retail arm and higher provisions. Kraft Foods made gains of 1.58% to 29.58p amid rumours of a raised hostile takeover bid for Cadburys.

The US markets will be closed on Monday to mark Martin Luther King Day.