FTSE up but moves muted before JPM

The top share index gained 0.3 percent early on Friday, as gains from miners and banks lent support but moves were limited as investors awaited for results from Wall Street firm JP Morgan Chase & Co.

By 9:11 a.m. the blue-chip was up 15.61 points at 5,513.81 after it closed 24.72 points, or 0.5 percent higher on Thursday, snapping two sessions of declines as miners bounced back.

Forecast beating results from Intel in the U.S. after the closing bell provided some reassurance to the market but moves were relatively muted, with investors awaiting more clues on the outlook from JP Morgan results, due for release at 12 p.m. British time.

"Results will dominate the newsflow and I would expect good numbers, but there will be little share price reaction unless companies increase expectations for the outlook, which they have little incentive to do" said Lars Kreckel, strategist at Exane BNP Paribas.

Miners were stronger, despite slightly weaker metal prices, adding to gains made in the previous session after Rio Tinto released soaring output figures.

Rio Tinto, Xstrata, Lonmin, Anglo American, Kazakhmys and BHP Billiton gained 0.9 to 1.3 percent.

Hedge fund company Man Group was the biggest blue-chip loser, down 4.1 percent after its flagship AHL fund saw $1.2 billion (735 million pounds) in performance losses in the three months to December.

Heavyweight mobile phone network operator Vodafone was the biggest individual drag on the index, down 1 percent, with earnings estimates cuts by UBS one factor impacting it. 

But other defensive stocks, like supermarkets and tobacco firms lent the index support.

Sainsbury and Tesco added 0.4 and 1.1 percent respectively while British American Tobacco added 0.4 percent.

Banks were also firmer, unruffled by reports that Barclays, Royal Bank of Scotland and HSBC would have to pay billions of dollars over the next 10 years as part of a levy on financial companies proposed by U.S. President Barack Obama on Thursday.

The banks gained 0.2 to 1.7 percent.

No important UK data is due on Friday so investors will focus on December U.S. inflation numbers, due at 1:30 p.m. British time, with consumer prices seen rising 0.2 percent on the month, after a 0.4 percent increase in November.

Year-on-year U.S. consumer prices are seen up 2.8 percent last month, up from a 1.8 percent increase in November.

January's Empire State index will also be released at 1:30 p.m. British time, followed by December U.S. industrial output and capacity utilisation numbers at 2:15 p.m., and the first reading for January's University of Michigan consumer sentiment index at 2:55 p.m.