London midday: Stocks pare gains after GDP data

- Footsie gains despite GDP data- Draghi continues to see downside risks- ARM rises on Apple earnings, broker upgradesAfter a strong start, the FTSE 100 index pared gains in mid-morning trade following some gloomy economic data that showed that the UK fell back into a 'technical' recession in the first quarter of 2012.The Office for National Statistics said economic output shrank by 0.2% in first three months of this year, with construction proving a particular drag. GDP contracted by 0.3% in the last three months of 2011, according to the ONS' latest figures. Forecasters had predicted that the UK would avoid the 'double dip' with 0.1% growth in the first quarter and some were still sticking to their guns following the release of the figures, possibly a reason why the market reaction to the data was not that severe. "Along with the Bank of England and many other analysts, we are hugely sceptical about the first-quarter GDP data showing contraction of 0.2% quarter-on-quarter," said Howard Archer, chief UK economist at IHS. "The economy is undeniably still in a hard place, but the evidence overall suggests that it managed to achieve modest expansion in the first quarter."Meanwhile, analyst Chris Crowe from Barclays Capital said: "The weak GDP outturn, combined with more persistent than expected inflation, highlights the MPC's ongoing policy headache." He now says that the bank's previous call of 'no further QE in May' is now less certain following today's figures. "Even if QE is not extended then a continued stagnation in demand could yet lead the MPC to act later in the year."In other news, European Central Bank (ECB) President Mario Draghi has said that the Eurozone economy is stabilising although there are still several downside risks, including the "renewed intensification of tensions in euro area sovereign debt markets" and "further increases in commodity prices".FTSE 100: Footsie lifted by ARMSmartphone chip designer ARM Holdings was the best performer helped by forecast-beating results last night from Apple (which reportedly uses ARM technology in its gadgets) and a number of broker upgrades. Jefferies raised its rating on the stock from undeperform to hold on the back of the recent share price slump and said: "We believe ARM has a solid execution 2H ahead (Royalties, Licensing) in smartphones." Assets under administration (AUA) at life assurance leviathan Standard Life rose a bit more than the market had been expecting in the first quarter of 2012, causing shares to advance. Financial peers RBS, Lloyds and Barclays were also making gains. Leading the downside was Centrica, Reed Elsevier, Tesco and Rolls-Royce after going ex-dividend. From today, investors will not have the right to the stocks' latest dividend payments.Russian miner Polymetal was lower despite saying that it is on track to deliver one million ounces of gold equivalent production in 2012. Revenue in 2011 rose 43% to $1,326m helped by rising gold prices. Meanwhile, Capital Shopping Centres fell after seeing a 2% year-on-year fall in footfall at its centres in the year-to-date. FTSE 250: Lamprell up after NDC exercises options for two rigsOil and gas engineering firm Lamprell was a high riser after saying it was to build two further rigs for Abu Dhabi's National Drilling Company (NDC). The company already has four of the jackup rigs under construction for the Middle Eastern company. Investec reiterated its buy recommendation for the stock this morning, saying that today's news improves medium-term revenue visibility.Electricals retailer Kesa was making gains after UBS upgraded the stock from neutral to buy, saying that the risk/reward is to the upside. "The current Kesa share price of 55p [yesterday's close] is just 7p above the freehold value per share of 48p which should provide a fair degree of downside protection," the broker said. Sales at sportswear retailer Sports Direct exceeded management's expectations in February and March. Group total sales for the nine weeks ending March 25th 2012 were up 13.2% to £267.6m from £236.4m in the corresponding period of last year. Oil and gas firm Premier Oil was up after receiving approval of its field development plan for the Solan field in the UK Continental Shelf from the Department of Energy and Climate Change Events, marketing and publishing group UBM was in demand as it maintained full-year guidance after a solid first quarter performance from its Events business offset weakness elsewherFTSE 100 - RisersARM Holdings (ARM) 552.50p +3.95%Burberry Group (BRBY) 1,441.00p +2.42%IMI (IMI) 1,003.00p +2.40%Tullow Oil (TLW) 1,517.00p +2.36%Vedanta Resources (VED) 1,202.00p +2.30%CRH (CRH) 1,260.00p +2.27%Sage Group (SGE) 287.20p +2.02%Anglo American (AAL) 2,354.50p +2.01%Johnson Matthey (JMAT) 2,360.00p +1.94%Pearson (PSON) 1,141.00p +1.88%FTSE 100 - FallersCentrica (CNA) 308.60p -4.31%Reed Elsevier (REL) 506.50p -3.71%Tesco (TSCO) 317.70p -2.38%Capita (CPI) 670.50p -1.76%Polymetal International (POLY) 934.00p -1.68%Shire Plc (SHP) 1,987.00p -1.24%Rolls-Royce Holdings (RR.) 812.50p -0.91%Associated British Foods (ABF) 1,228.00p -0.89%United Utilities Group (UU.) 616.50p -0.88%Morrison (Wm) Supermarkets (MRW) 286.10p -0.83%FTSE 250 - RisersLamprell (LAM) 343.10p +6.35%Kesa Electricals (KESA) 58.30p +5.23%Kenmare Resources (KMR) 51.55p +3.62%Home Retail Group (HOME) 104.30p +3.47%Spectris (SXS) 1,872.00p +3.43%Talvivaara Mining Company (TALV) 191.00p +3.41%Premier Oil (PMO) 380.40p +3.29%Ladbrokes (LAD) 179.30p +3.28%Genus (GNS) 1,332.00p +3.18%Ferrexpo (FXPO) 282.60p +3.06%FTSE 250 - FallersFidessa Group (FDSA) 1,471.00p -3.92%Hansteen Holdings (HSTN) 71.45p -3.45%Greggs (GRG) 498.00p -3.21%National Express Group (NEX) 210.20p -2.95%Tullett Prebon (TLPR) 334.40p -2.79%TalkTalk Telecom Group (TALK) 126.10p -2.63%International Public Partnerships Ltd. (INPP) 118.40p -2.55%JD Sports Fashion (JD.) 781.50p -2.19%Balfour Beatty (BBY) 258.50p -2.08%Brewin Dolphin Holdings (BRW) 162.30p -1.93%BC