Bruised FTSE aided by strong miners

* FTSE 100 up 0.2 percent

* Resolution boosted by capital return

* Burberry lifted by bid speculation

By Tricia Wright

LONDON, June 7 (Reuters) - Britain's top shares were higher on Tuesday, continuing a rebound from last week's sharp falls, as gains from mining stocks more than offset declines from retailers after weak sales data on the high street.

The FTSE 100 <.FTSE> was up 9.73 points, or 0.2 percent, at 5,872.89 by 1118 GMT, having added 0.1 percent on Monday. The index fell 1.4 percent last week, pressured by gloomy U.S. data.

Miners <.FTNMX1770> added the most points to the blue-chip index, building on the previous session's gains. Bargain hunters moved in on Rio Tinto , up 1.4 percent, which has recently been trading below its 200-day moving average.

"We seem to be in something of a straitjacket at the moment. On the one hand you have got the ongoing European sovereign debt situation, although things do seem to be inching along in terms of Greece," Richard Hunter, head of UK equities at Hargreaves Lansdown, said.

"The other arm is the U.S. situation where there is a debate going on about whether the economy is in a soft patch or whether it is something a bit more structural ... Until either one or both of those issues can be resolved, it is difficult to see the market moving on in any meaningful way."

Greece has made progress in tackling its debt crisis but cannot afford to relax the pace of reforms, the International Monetary Fund's senior representative in Greece told a banking conference. [ID:nLDE7560D3]

Bank stocks <.FTNMX8350> were mixed, recovering some of their poise after a sell-off in the previous session.

Lloyds Banking Group was the best performer, up 1.6 percent after being the biggest blue-chip faller on Monday after downbeat comment from chief executive Antonio Horta-Osorio in an interview with the Financial Times. [ID:nLDE75221O]

Fellow part state-owned lender Royal Bank of Scotland advanced 0.6 percent as the Kuwait Investment Authority said it would consider buying a stake in RBS although no offer has yet been made. [ID:nLDE7560V0]

Barclays shed 0.4 percent, after a ruling by the judge overseeing the Lehman Brothers bankruptcy case.

The trustee for the brokerage arm of Lehman Brothers Holdings Inc was entitled to $4 billion in margin assets that have been the subject of the long-running legal fight with Barclays, the judge said. [ID:nN06272816]

JPMorgan cut estimates for investment banks after weaker than expected second-quarter results in the sector, with the broker reducing its price target for Barclays.

HIGH STREET GLOOM

Weakness was seen on the high street after retail sales fell unexpectedly in May as low wage growth and high inflation forced consumers to rein in spending after a strong Easter, a survey from the British Retail Consortium found.

Marks & Spencer shed 0.8 percent, Tesco dropped 1 percent, and Next fell 0.2 percent.

"Any time that there is not consistent buying out there by the bulls, you are going to get the focus straight back onto anything bad -- so, the high street, Greece, and the general lack of economic figures in the U.S," said Joe Rundle, head of trading at ETX Capital.

Among individual movers, Resolution topped the FTSE 100 leader board, up 3.5 percent, after the insurance consolidator said it will return 500 million pounds surplus cash to investors. [ID:nLDE7560FR]

Burberry firmed 1.5 percent, as traders pointed to a French press report pointing to bid talk within the sector.

French retailer and luxury goods company PPR is in talks to make a large acquisition in the luxury sector, La Tribune reported, citing an unnamed internal source.

Whitbread , meanwhile, was a big faller, off 1.4 percent, after Barclays Capital downgraded its rating for the leisure firm to "equal-weight". (Editing by Dan Lalor)