* FTSE 100 index up 0.6 percent
* Miners boosted by firmer metal prices
* Imperial Tobacco lifted by upbeat trading statement
By Tricia Wright
LONDON, Feb 2 (Reuters) - Mining stocks and banks helped
drive Britain's top share index higher on Wednesday, as doubts
about the recovery story were dispelled by strong economic data
and easing fears over Egypt.
By 1207 GMT, the FTSE 100 index <> was up 35.42 points,
or 0.6 percent, at 5,993.24, extending Tuesday's 1.6 percent
rise.
Miners <.FTNMX1770> were in demand, occupying nearly all of
the top 10 slots on the gainers' list, with copper <CMCU3>
rising to a record high on Wednesday, spurred by improved
prospects for global economic growth and a weaker dollar.
ENRC <ENRC.L> added 2.2 percent after the miner said
ferroalloy production rose 5.6 percent in the fourth quarter as
the company's operations in Kazakhstan ran at full available
capacity. []
The mood was lifted by data on Tuesday showing the U.S.
manufacturing sector grew at its fastest pace in nearly seven
years. []
Domestic data also provided cause for optimism. British
construction activity returned to growth in January, helped by
better weather and a rise in new business, the monthly
Markit/CIPS purchasing managers index showed. []
Concerns over the impact of political unrest in Egypt
receded after President Hosni Mubarak said he would step down at
the end of his term in September. []
"Risk appetite has shown a marked improvement since the
beginning of the week. The Egypt situation seems to be settling
down a bit, and I think that's made investors much more
optimistic about the global economic recovery," said Michael
Hewson, market analyst at CMC Markets.
U.S. DATA EYED
January U.S. ADP National Employment data is due at 1315
GMT, which will give a steer on Friday's January U.S. jobs
report, with U.S. stock index futures <SPc1> <DJc1> <NDc1>
pointing to a flat to lower opening on Wall Street.
Heavyweight banks saw good support on the back of improved
investor sentiment, led by Barclays <BARC.L>, up 1.8 percent.
Imperial Tobacco <IMT.L> was the star FTSE 100 performer, up
4.5 percent after the cigarette maker surprised investors with a
return to volume growth in the last quarter of 2010, driving its
sales higher due to emerging market growth. []
"We think this should put a stop to the recent rot in the
share price and create a platform for a more balanced ticket of
top line delivery in FY11," Investec Securities said in a note.
Peer British American Tobacco <BATS.L> added 1.2 percent.
On the downside, AstraZeneca <AZN.L> and TUI Travel <TT.L>
fell after going ex-dividend.
And interdealer broker ICAP <IAP.L> shed 1.6 percent after
it said the pace of growth in its post-trade unit, an area in
which it has invested heavily in recent years, was not yet
meeting its medium-term targets.
Numis Securities cut its rating on the stock to "hold" from
"add", saying the shares were now fairly valued.
(Editing by Will Waterman)
