FTSE regains momentum ahead of Fed move

Retail shares have received a welcome boost as the FTSE 100 Index shook off two days of gloom to open back on positive ground…

Retail shares have received a welcome boost as the FTSE 100 Index shook off two days of gloom to open back on positive ground.

After steady progress overnight on Wall Street, London's benchmark index was up 24.1 points at 4086.5 after an hour of trading.

Despite a steady stream of company results and trading updates in London, investors will also be keeping an eye on share prices across the Atlantic later in the day, ahead of an expected move by the US Federal Reserve to cut American interest rates.

In London electrical retailer Dixons soared 12 per cent or 14p to top of the Footsie risers board at 125.75p after trumping downbeat profit forecasts.

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Predictions were scaled back earlier in the year after Dixons reported a disappointing Christmas period but its overseas business helped drive progress.

Meanwhile rival Kingfisher climbed 7.75p to 271.75p and Argos-owner GUS was up 8p at 658p.

Outside the top flight, bus and train operator Stagecoach climbed 1.25p to 58p even though annual results showed it dropping into the red at the bottom line.

The group reassured investors that it was on track with both its US restructuring and with securing the future of its UK rail operations. Rival Arriva was also up 9p at 370.5p.