FTSE 100 edges up as earnings offset economy worries

(Reuters) - UK's FTSE 100 opened higher on Wednesday, boosted by a positive earnings update from insurer Aviva, although worries about Britain's gloomy economic outlook and interest rate rises weighed on the overall mood.

The blue-chip FTSE 100 edged up 0.2% by 0809 GMT, mirroring a cautious mood across European markets.

Aviva climbed 1.8% after the insurer maintained its dividend guidance and capital returns outlook as it reported a positive end to trading for the year in its general insurance unit.

Airline stocks also got a lift after EasyJet said it expected to beat current market expectations for 2023 based on the strength of bookings into summer and was set to deliver a full-year profit. EasyJet jumped 6.6%, while Wizz Air added 4.7%.

The midcap FTSE 250 index inched up 0.1%.

Limiting further gains in markets, Britain's official economic forecaster has told the government that it overestimated the prospects for medium-term growth and that it intends to revise down its outlook, the Times newspaper reported.

(Reporting by Sruthi Shankar in Bengaluru; editing by Uttaresh.V)