* FTSE up; above 5,100 for first time in 12 months
* Banks, miners strong; Xstrata lifted by RBS upgrade
* U.S. inflation data due out at 1230 GMT
By David Brett
LONDON, Sept 16 (Reuters) - Britain's FTSE 100 <>
gained 1.4 percent by midday on Wednesday, breaching the 5,100
level for the first time in 12 months, as confidence on the
global economy lifted commodity stocks and banks.
At 1124 GMT, the FTSE 100 <> index was 71.95 points
higher at 5,114.08. The benchmark index closed 0.5 percent
points higher on Tuesday, marking its third straight session of
gains.
London's blue chips have rallied 20 percent this quarter, on
track to post its best such gains since the index was launched
in 1984, but was still down around 7 percent from a year ago
prior to the collapse of Lehman Brothers.
Banks added most points, fuelled by hopes that the global
recession is over and ahead of closely watched U.S. inflation
numbers, with August CPI scheduled for release at 1230 GMT.
Barclays <BARC.L>, Lloyds Banking Group <LLOY.L>, Royal Bank
of Scotland <RBS.L>, and HSBC <HSBA.L> rose 1.8 to 4 percent.
The European Commission may force Lloyds Banking Group
<LLOY.L> to sell all or part of its key Halifax subsidiary in
compensation for the billions of pounds of state aid the group
has received, the London Times reported. []
Investors shrugged off data that showed Britain's jobless
rate climbed to its highest level in almost 13 years in July.
[]
"My general feeling is that the market will keep on pushing
forward," said Philip Gillett, a trader at IG Index.
He said recent positive comments and some bullish economic
data are overriding any fears that the market might be over
bought or due a correction.
"Any sign of improvement and we'll continue on an upward
trajectory... supporting the bull's view that the pattern will
continue," he said
Miners also weighed with support, boosted by firmer metal
prices as comments by Federal Reserve chief Ben Bernanke on
Tuesday raised hopes for an increase in demand. []
Xstrata <XTA.L>, Fresnillo <FRES.L>, Eurasian Natural
Resources <ENRC.L>, Rio Tinto <RIO.L>, Randgold Resources
<RRS.L>, and BHP Billiton <BLT.L> gained 2.8 to 4.7 percent.
Xstrata was also lifted by an RBS upgrade to "buy" from
"hold" with an increased target of 1,050 pence, up from 625.
Oil majors also moved higher as crude prices <CLc1> held
above $70 a barrel, with Royal Dutch Shell <RDSa.L>, BG Group
<BG.L>, Cairn Energy <CNE.L>, and Tullow Oil <TLW.L> up between
1 percent to 2.7 percent.
Tullow Oil <TLW.L> was the top FTSE riser, adding 7.5
percent after a report said the company has struck oil offshore
Sierra Leone. []
U.S. DATA IN FOCUS
Stock index futures in the U.S. pointed to a higher open on
Wall Street on Wednesday, with futures for the S&P 500 <SPc2> up
0.5 percent, Dow Jones <DJc2> futures up 0.5 percent and Nasdaq
100 <NDc2> futures up 0.3 percent, ahead of U.S. CPI data.
At 1230 GMT the latest set of inflation data will be
released and are expected to show the overall picture remaining
benign as the economy begins to emerge from recession.
Britain's second-biggest clothing retailer Next <NXT.L>
gained 4.4 percent after it posted a 7 percent rise in
first-half profit, at the top end of expectations, although it
forecast a tougher second half and a flat full-year outcome.
[]
Next's firm results boosted other blue chip retailers, with
Marks & Spencer <MKS.L> and Home Retail Group <HOME.L> up 0.9
percent and 3.5 percent, respectively.
Defensive stocks, which tend to underperform as sentiment
improves, fell as investors appetite for risk increased, with
utilities, tobaccos and food retailers all weak.
Scottish & Southern Energy <SSE.L>, National Grid <NG.L>,
Imperial Tobacco <IMT.L>, and Sainsbury <SBRY.L> were down,
losing 0.2 to 1.1 percent.
Ex-dividend factors took 0.55 points off the blue chip
index, with Antofagasta <ANTO.L>, Cadbury <CBY.L>, and Land
Securities <LAND.L> all losing their payout attractions.
($1=.6079 pounds)
