* FTSE 100 up 0.9 percent, close to technical levels
* Energy stocks up as crude surpasses $80 per barrel
* Chinese, U.S. data supportive, weak UK data shrugged off
By Simon Falush
LONDON, Oct 1 (Reuters) - Firmer energy stocks fuelled gains
in Britain's top shares, as growing optimism on the economy
pushed crude prices higher while BG Group <BG.L> rose sharply as
Spanish peer Repsol announced a deal with Chinese group Sinopec.
By 1050 GMT the FTSE 100 <> was up 47.92 points, or 0.9
percent, at 5,5596.54 points after it closed down 0.4 percent on
Thursday. The index ended September 6.2 percent higher.
The index was close to a high set in mid April, but
technical resistance levels were keeping it in check, analysts
said.
"Around 5,610 is a 78.6 percent retracement of the April
high and July low," said Phil Roberts Phil Roberts, chief
European technical strategist at Barclays Capital.
"The fact that we have spent around three weeks below it
shows it is important, the longer we stay here the more it is
being eroded," he said.
He added that the index would need to move to around 5,700
before he could be confident that an uptrend is in place.
Crude <CLc1> rose beyond $80 per barrel and metal prices
firmed across the board as stronger-than expected economic data
from China and the United States boosted confidence in the
global economic recovery.
This lifted miners and energy stocks with Xstrata <XTA.L>
adding 1.1 percent and BP <BP.L> up 3.7 percent.
But BG Group was the star UK blue-chip performer, up 4.7
percent as an agreement between Chinese refiner Sinopec Group
<0836.HK> and Repsol <REP.MC> was seen as supportive to the UK
company's valuation. []
BP <BP.L> gained 3.5 percent. The stock, which has surged
around 9 percent in three sessions, is running into strong
technical resistance around 446 pence.
Chinese manufacturing gathered momentum last month, easily
beating forecasts and providing further evidence that the
economy is pulling smoothly out of a second-quarter slowdown.
UPSIDE LIMITED
However analysts saw limited upside for equities ahead of
more concrete corporate news.
"I think we'll be range-bound until earnings season in two
or three weeks time," said Josh Raymond at City Index.
"From there we may get a kick higher considering that the
last two earnings seasons have been pretty good.
Equity investors shrugged off economic data that showed
activity in Britain's manufacturing sector weakened more than
expected in September to grow at its slowest pace in 10 months.
[]
UK banks got a lift on the slightly improved appetite for
risk, with Barclays <BARC.L> gaining 1 percent while HSBC
<HSBA.L> added 1.3 percent.
Engineers Weir Group <WEIR.L> and Invensys <ISYS.L> were
among the top gainers, up 2.9 and 2 percent respectively, with
traders saying there was read-across from Cookson <CKSN.L> which
gained on Thursday on vague bid talk.
Across the Atlantic, the final reading of the
Reuters/University of Michigan consumer sentiment index for
September will be released at 1355 GMT. The U.S. Institute for
Supply Management will release its September manufacturing index
at 1400 GMT.
(Additional reporting by Blaise Robinson and Tricia Wright;
Editing by Sharon Lindores)
