* FTSE 100 up 1.1 percent
* Burberry gains; sees year profit at top end of hopes
* Miners, banks rebound after previous session's falls
By Tricia Wright
LONDON, Jan 18 (Reuters) - Britain's top share index rose on
Tuesday, led higher by Burberry <BRBY.L> as investors cheered an
upbeat trading update from the luxury goods group, while buyers
came in for banks and commodity stocks.
By 1222 GMT, the FTSE 100 index <> was up 67.72 points,
or 1.1 percent, at 6,053.42.
Burberry <BRBY.L> topped the blue chip leader board, up 4.3
percent, after forecasting full-year profit at the top end of
market expectations, as it beat expectations with a 27 percent
rise in third-quarter revenue.
Brewer SABMiller <SAB.L> added 1.7 percent after it beat
forecasts with a 3 percent rise in quarterly volumes, boosted by
growth in Africa and Asia, and said it saw continued improvement
in economic conditions in many of its emerging markets.
And Rio Tinto <RIO.L> climbed 1.7 percent after producing
record volumes of iron ore in the October-December quarter and
for 2010 as a whole to meet surging Chinese demand and cash-in
on soaring prices, though coal output was disrupted by
Australian floods.
"There have been some good corporate earnings ... and a very
strong Asian session, all of which have contributed to a nice
rally today, so we're knocking on the door of resistence around
6,050," Angus Campbell, head of sales at Capital Spreads, said.
BANKS FIRM
Banks <.FTNMX8350> were also stronger, as the risk sensitive
sector gained on improved confidence.
"There's a bit of hope from the European finance ministers
meeting as well, which was relatively encouraging. They're all
making the right noises, that they need to extend the fund, so
banks are a little bit stronger as well," Campbell said.
European policymakers will eventually boost the firepower of
their euro zone bailout fund by 260 billion euros, according to
a Reuters poll of analysts who rated it as fairly effective in
tackling the bloc's debt crisis. []
Miners <.FTNMX1770> provided much of the support for the
index as metals prices rose on a weaker dollar.
On the downside, GlaxoSmithKline <GSK.L> shares extended
losses, falling a further 2.3 percent after shedding 1.6 percent
on Monday when the drugmaker announced a 2.2 billion pounds
($3.4 billion) legal charge that will wipe out profits in the
fourth quarter.
Essar Energy <ESSR.L> was the top faller, down 4.6 percent
after its shares were diluted by a $500 million convertible bond
offering.
The UK blue chip index briefly pared gains after British
consumer price inflation rose more than expected, adding to
expectations that interest rates may need to rise.
U.S. earnings were in focus, with lender Citigroup <C.N> and
tech giant Apple <AAPL.O> both reporting numbers on Tuesday.
"Corporate results were great last year, and while margins
are not growing as fast, they are still expanding and revenues
are picking up, and that's very appealing," John Haynes, head of
research at Rensburg Sheppards said.
(Editing by Hans Peters)
