Commodities, banks drive FTSE up 0.8 percent

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Britain's top shares were 0.8 percent higher at midday on Friday, supported by strength in heavyweight miners and oils after upbeat industrial data from China, with investors' awaiting U.S retail sales numbers.

At 1156 GMT, the FTSE 100 was 42.22 points higher at 5,286.59, extending Thursday's gains when the index closed up 0.8 percent.

"The markets have bounced nicely off the 5,200 level and are continuing their rise," said Angus Campbell, market strategist at Capital Spreads.

"Really it's more of an emerging markets story than anything else with the Chinese industrial production number coming in stronger, and mining stocks really leading us higher."

Miners were the biggest blue chip gainers, after data from top commodity consumer China showed a surge in industrial output, underlining its economy's brisk recovery from the global downturn.

Metals prices rallied on the back of the data from China, with Kazakhmys, Lonmin, Vedanta Resources, Xstrata, Antofagasta , Fresnillo and BHP Billiton up 2.5 to 4.0 percent.

China's solid industrial growth also fuelled strength in crude oil prices, which rose above $71 a barrel, helping energy companies BP, Royal Dutch Shell, Cairn Energy and Tullow Oil add 0.7 to 0.9 percent.

Meanwhile, a consortium led by Shell has won a deal to develop Iraq's supergiant Majnoon oilfield, an Iraqi oil official said.

Banks were higher as a sector, with most extending gains from the previous session, led by Standard Chartered, up 1.5 percent, while Barclays and Royal Bank of Scotland gained 0.5 and 0.6 percent, respectively.

But HSBC and Lloyds Banking Group missed out, losing 0.8 and 0.3 percent, respectively.

BROKER COMMENT HELPS

Among individual FTSE 100 gainers, Burberry added 2.3 percent after Barclays Capital initiated coverage of the luxury goods company with an 'equal-weight' recommendation and a price target of 600 pence.

A bullish note from Cazenove helped tour operators Thomas Cook and TUI Travel gain 2.4 percent and 2.2 percent, respectively.

Recent broker comment also continued to support media issues WPP Group and BSkyB, as well as property firm Segro, which were up 2.6 to 3.1 percent.

Fixed line telecom was the main sector under pressure among the blue chips, with Cable & Wireless and BT Group down 0.1 and 0.5 percent, respectively, after a recent good run.

Cadbury was also weak, losing 0.3 percent ahead of a trading update, due on Monday, which will act as its defence document against Kraft Foods' hostile takeover bid for the British confectionery firm.

Input costs for British manufacturers rose at their fastest annual pace in a year in November due to a rebound in crude oil prices after last year's falls, official data showed on Friday.

Data from across the Atlantic will be key this afternoon, with U.S. retail sales data for November due at 1330 GMT, with investors looking for any sign consumers are starting to spend again and give the fragile economic recovery a much needed lift.

After that the first reading of the Reuters/University of Michigan consumer sentiment survey for December, due at 1455 GMT will also attract attention.

U.S. stock index futures,, pointed to opening gains on Wall Street ahead of the data, extending Thursday's advance after reassuring trade numbers.