* Index hits highest closing level since October 2008
* Banks jump on Barclays, HSBC results
* Miners, energy stocks up on higher metal, oil prices
By Jon Hopkins
LONDON, Aug 3 (Reuters) - Britain's blue chip index hit new closing and intraday highs for the year on Monday, driven by strength in banks, as results from Barclays and HSBC pleased investors, and helped by solid gains on Wall Street after data.
The FTSE 100 ended 74.10 points, or 1.6 percent higher at 4,682.46, its highest closing level since the collapse of Lehman Brothers in early October 2008, having also reached an intraday peak for 2009 of 4,710.23 on Monday.
The blue chip index has gained over 32 percent since hitting a closing low for 2009 on March 9.
"Investor sentiment is becoming more and more optimistic by the day and so far this week the banks are fuelling the momentum," said Angus Campbell, head of sales at Capital Spreads.
Banks were the best blue chip performers as investors welcomed first-half numbers from HSBC and Barclays at the start of a week of results from the sector.
HSBC rose 5 percent as it reported a pretax profit for the six months to the end of June of $5.02 billion, down from $10.2 billion a year earlier but just ahead of the consensus forecast.
Barclays added 6.7 percent even as its results fell short of expectations with an 8 percent rise in half-year profit as bad debts almost doubled to offset buoyant earnings from its enlarged investment bank.
"The banking sector's return to profitability should be considered a good thing, not just for the financial markets, but for the UK taxpayers too as their stake in RBS and Lloyds look more likely to give a return on their investment, albeit still over the long run", Campbell said.
Within the sector, Standard Chartered was up 1.1 percent ahead of its numbers due on Tuesday; Lloyds Banking Group, scheduled to release its figures on Wednesday, firmed 0.3 percent; and Royal Bank of Scotland, which reports on Friday, added 3.5 percent.
Gains in HSBC and Barclays also helped push sterling to its highest level since mid-October at $1.6937 with the currency also gaining strength from brighter British PMI manufacturing data.
U.S blue chips were up 0.8 percent by London's close after ISM manufacturing data showed the sector shrank at a slower pace in July.
MINERS SHINE
Miners were stronger as metals prices rallied, with copper hitting a 10-month high on demand hopes following further signs that economic recovery in China was picking up.
Xstrata, BHP Billiton, Lonmin Kazakhmys, Rio Tinto, Anglo American and Vedanta Resources were up between 4.0 and 8.8 percent.
Energy majors firmed as crude prices climbed above $71 a barrel. BG Group, BP, Royal Dutch Shell, Cairn Energy and Tullow Oil were up between 0.7 and 3.5 percent.
Oil and gas services firm Petrofac was the top gainer on the FTSE 100, up 11.5 percent as UBS raised its rating to "buy" from "neutral".
Defensive stocks such as tobaccos, food producers and utilities were in the doldrums, however, as risk aversion among investors retreated.
Imperial Tobacco declined 2.5 percent, while British American Tobacco fell 1.9 percent, also weighed down by an RBS downgrade to "hold" from "buy" after recent results.
Associated British Foods, Cadbury and Unilever lost between 0.6 and 1.2 percent, while among supermarkets Wm Morrison, J Sainsbury and Tesco fell between 0.6 and 1.1 percent.
Media issues were also weak, with BSkyB the top FTSE 100 faller, down 2.8 percent hit by profit-taking after strong gains following results last week. (Editing by Rupert Winchester)