* FTSE 100 gains 0.6 percent, recovers from 6-wk low
* Results lift Compass, Johnson Matthey
* Banks, miners gain after sharp falls earlier this week
By Simon Falush
LONDON, Nov 24 (Reuters) - Banks and commodity stocks
recovered on Wednesday some of this week's sharp losses to push
Britain's top shares higher, but worries on euro zone debt and
military action in the Korean peninsula kept investors cautious.
By 1154 GMT the FTSE 100 <> was 30.85 points or 0.6
percent higher at 5,612.13 after sliding to a six-week low
earlier in the session.
North Korea shelled a South Korean island on Tuesday in one
of the most serious incidents on the peninsula since the Korean
War ended in 1953.
A statement from North Korea on Wednesday, which accused its
southern neighbour of "reckless military provocation", kept the
focus on geopolitical risk.
However without any further military activity, investors
cautiously edged back into riskier assets such as equities.
The mining index <.FTNMX1770>, which fell 2.3 percent on
Tuesday, gained 1.1 percent, supported by recovering metals
prices.
Similarly, energy stocks gained as crude prices rose towards
$82 per barrel. Royal Dutch Shell <RDSa.L> added 0.9 percent.
However the FTSE is still down 1.9 percent, on track for its
worst weekly performance since July, as concerns that a rescue
package for Ireland would not be enough to stop a mounting
financial crisis in the euro zone spreading to other economies.
"There's such a lot of uncertainty out there and, given UK
exposure to the Irish banking sector, the FTSE is in the firing
line if anything is," Peter Dixon, economist at Commerzbank,
said. "It's a confidence factor that will go on for some time."
Banks offered some support as investors repositioned
themselves after hefty falls in the sector. Heavyweight HSBC
<HSBA.L> added 0.7 percent.
COMPASS POINTS WAY
Some positive corporate data boosted sentiment, with Compass
Group <CPG.L> and Johnson Matthey <JMAT.L> gaining after
forecast-beating results.
Compass gained 3.7 percent after the world's biggest
contract caterer beat forecasts by reporting an 18 percent rise
in full-year profits and lifting dividends by a third.
Platinum refiner Johnson Matthey added 1.6 percent after
saying first-half profit rose 44 percent, beating forecasts, on
growing demand for its vehicle catalysts and higher platinum
group metal prices.
Intertek <ITRK.L> and Capita Group <CPI.L> were strong,
adding 5.9 and 2.9 percent respectively, after Goldman Sachs
added both to its "conviction buy" list in a sector review.
Britain's economy grew 0.8 percent in the third quarter of
this year, official data confirmed on Wednesday, boosted by net
trade which made its biggest contribution to growth in two
years. []
Capital Shopping Centres <CSCG.L> was the sharpest faller,
down 2.4 percent after confirming it is in talks to buy the
Trafford shopping centre in Manchester for 1.6 billion pounds
($2.53 billion) in a deal that would make the seller, Peel
Group, its biggest shareholder.
With U.S. markets closed for Thanksgiving on Thursday and
only trading for a half day on Friday, a batch of data will be
released on Wednesday including latest initial jobless claims,
October personal income and consumption numbers, and October
durable goods, all due at 1330 GMT.
Man Group <EMG.L>, Amec <AMEC.L> and Next <NXT.L> were
weighed after going ex-dividend.
($1=.6323 Pound)
(Editing by David Hulmes)
