Morning Markets: FTSE rebounds from one-week slide

The FTSE climbed 0.72% in early trading to 5255.18 bolstered by strong performances from big names.

TV and Internet service provider British Sky Broadcasting (BSkyB) was up 2.80% to 569.50% after a strong second quarter with revenues coming in ahead of expectations. Turnover in the six months to the end of December 2009 was £2.87bn, up 10% from £2.60bn the year before.

Financials were also doing well, with Barclays up 2.98% to 274.80 Schroders NV climbing 2.81% to 1023p, Royal Bank of Scotland up 2.76% to 33.90p and Lloyds Banking Group making gains of 2.58% to 52.15p.

Miners were also in demand, with Rio Tinto, Anglo American, Eurasian Natural Resources, Fresnillo and Antofagasta all up.

Tobacco firms led the losers, with Imperial Tobacco Group down 0.66% to 271.70p and British American Tobacco falling by 0.34% to 2063p. Centrica also made losses of 0.66% to 271.70p.

Overnight in the US, the Dow Jones recovered after the Federal Reserve held interest rates at close to zero, closing up 41 at 10,236. Apple was the star of the show following the unveiling of the long-anticipated Apple iPad, a touch-screen tablet computer that runs apps from the iTunes store. The launch sparked feverish trading in the company's shares, with volumes three times higher than normal.

In Japan, the Nikkei closed down 73 points at 10,252 as the stronger yen weighed on demand for exporters and fears about China implementing more measures to cool growth spooked the market. There was also some caution ahead of the outcome of the Fed's policy meeting.

Sony dropped 2% in Tokyo, Canon fell 2.8%, Honda lost 1.6% while Panasonic declined 1.7%. Toyota slumped 4% as it suspended sales of several of its models following a recall because of faulty accelerator pedals.