* FTSE 100 index gains 0.7 percent
* Miners, oils lifted by firmer commodity prices
* Banks gain as recent euro-zone debt worries ease
By Jon Hopkins
LONDON, Dec 21 (Reuters) - Britain's top share index held
firm around midday on Tuesday, led by strength in commodity
shares and a bounce by banks, though volumes were thin as the
Christmas holidays approached.
At 1146 GMT the FTSE 100 <> index was up 43.31 points,
or 0.7 percent at 5,934.92, close to a fresh 30 month peak
reached early on at 5,938.40. Trading volumes, however, were
just 20 percent of the 90 day average.
"There is ... the very real chance that thinner volumes will
exacerbate volatility and this could be precisely the sort of
environment that could help the FTSE push out to the big 6,000
level before the year end," said Ben Critchley, senior sales
trader at IG Index.
"We also have the Santa rally phenomena that typically
serves up some festive cheer for equities around this time of
year," added Critchley.
Miners provided the main support for the FTSE 100 around
midday as metals prices pushed higher, with copper up at record
levels, fuelled by a supply squeeze. Eurasian Natural Resources
<ENRC.L> was the best sector performer, up 2.8 percent.
Rio Tinto <RIO.L> gained 2.4 percent amid media reports that
Rio is talking to Australian-listed coal miner Riversdale
<RIV.AX> about a higher $3.8 billion takeover bid, ahead of a
possible bidding war. []
Energy shares were higher as a sector as crude <CLc1> held
firm, with BP <BP.L> and Royal Dutch Shell <RDSa.L> up 0.4 and
1.3 percent respectively, but BG Group <BG.L> fell 1.4 percent.
Banks bounced back after recent weakness caused by euro zone
debt exposure worries, with comments from a Chinese vice premier
that China supports efforts by the EU to calm global markets in
the wake of Europe's debt crisis helping ease concerns.
Royal Bank of Scotland <RBS.L> was the top FTSE 100 riser,
up 3.2 percent, while Lloyds Banking Group <LLOY.L> and Barclays
<BARC.L> gained 1.5 and 1.1 percent respectively.
Among individual blue chip gainers, Rolls-Royce <RR.L> added
2 percent boosted by an upgrade to "buy" from Citigroup.
AGGREKO LOSES POWER
On the downside Aggreko <AGGK.L> was the biggest blue chip
faller, down 2.4 percent after a target price cut by Credit
Suisse, and as investors booked profits in the temporary power
supplier after a rise on Monday prompted by a contract win.
Defensively-perceived stocks featured among the main FTSE
100 fallers, reversing Monday's gains as investors risk appetite
returned, with telecoms povider BT Group <BT.L> losing 1.2
percent, and drugmaker GlaxoSmithKline <GSK.L> down 0.8 percent.
Retailers suffered as fears lingered that the snowy
conditions in Britain will impact sales over the key Christmas
trading period, with Next <NXT.L> down 0.7 percent and Marks &
Spencer <MKS.L> off 0.4 percent.
British consumer confidence remained steady at its lowest
level since July this month as a rise in shoppers' willingness
to buy big-ticket items offset growing pessimism over the
economy, a survey showed on Tuesday. []
British public sector net borrowing unexpectedly surged in
November to its highest on record, due to higher health, defence
and EU spending. []
(Editing by Greg Mahlich)
