* FTSE 100 up 0.2 pct
* JP Morgan results boost banks
* Miners, oils lose ground
* Defensives gain ground
* Earnings from U.S. firms Google, IBM eyed
By David Brett
LONDON, July 16 (Reuters) - Upbeat results from JP Morgan
boosted banks, lifting Britain's top share index into positive
territory for a fourth session in mid-session trade on Thursday.
The index was trading in slightly negative territory in
early trade but the JP Morgan results lifted the FTSE 100
<> index 0.2 percent, or 8.53 points, to 4,354.99 by 1110
GMT.
The index closed at a four-week high on Wednesday, and is
set for its best weekly performance in two months.
"(JP Morgan results) have given a shot in the arm to the
markets," said Richard Hunter, head of equities at Hargreaves
Lansdown.
"It's too early to call the earnings season a success, but
the early signs are positive as evidenced by a shift to risk
taking on both sides of the pond."
Banks were the biggest driver of gains, continuing the bull
run from the last couple of sessions following the results from
JP Morgan.
HSBC <HSBA.L>, Barclays <BARC.L> and Standard Chartered
<STAN.L> added between 0.6 and 1.7 percent.
Among other financials, Schroders <SDR.L> climbed 2.7
percent, after Citigroup raised the fund firm to "buy" from
"sell".
The U.S. will continue to be the main focus on Thursday as
second-quarter earnings season continues with Google <GOOG.N>
and IBM <IBM.N> both due to report later in the session.
DEMAND SOGGY
However, the overall outlook for the global economy was
still looking difficult with a soggy demand outlook dragging
metals and crude prices lower, putting pressure on miners and
energy stocks.
Mining firms took the most points off the index. Anglo
American <AAL.L>, BHP Billiton <BLT.L>, Kazakhmys <KAZ.L> and
Rio Tinto <RIO.L> lost between 0.3 and 2.3 percent.
Oil stocks retreated following Wednesday's rally as crude
again softened back below the $61 a barrel a mark <CLc1>.
Energy firms Tullow Oil <TLW.L>, Cairn Energy <CNE.L>, Royal
Dutch Shell <RDSa.L>, BP <BP.L> and BG Group <BG.L> fell between
0.3 and 2.3 percent.
However, Petrofac <PFC.L> moved 4.7 percent higher to lead
the FTSE risers, after the company said its Petrofac Emirates
unit, in partnership with GS E&C, was awarded a $2.1 billion Abu
Dhabi integrated gas development contract.
UK software firm Autonomy <AUTN.L> was the biggest faller on
the index, down 8.6 percent, as analysts said although the firm
reported second-quarter revenue which was in line with
expectations, it missed a number of top-end estimates, and the
market expected more from its outlook.
Risk appetite, while slightly improved, was still fragile
leading investors to move into defensive pharmaceutical and
tobacco stocks.
AstraZeneca <AZN.L> and Shire <SHP.L> added 1.1 and 1
percent, respectively, while British American Tobacco <BATS.L>
gained 1 percent and Imperial Tobacco <IMT.L> was up 1.2
percent.
On the economic front, China's growth rate shot up in the
second quarter on the back of a surge in state spending and bank
lending, boosting hopes the biggest emerging economy will lead
the way out of the worst global downturn since the 1930s.
[].
As well as the corporate newsflow, further U.S. economic
data is expected later.
The National Association of Home Builders/Wells Fargo
Housing Index, which measures U.S. housebuilder sentiment, is
due at 1400 GMT, while the Philly Fed index is due out at 1700
GMT.
(Additional reporting by Simon Falush; editing by Simon
Jessop)
